Remember All Those Great No Doc & State To Qualify Portfolio Programs?

Well your lender doesn't remember those programs, and in fact they act like they never existed!

What does this mean to you? Well it could mean prison time, and being kept away from your family!

Have you ever heard that it “doesn't matter what income you make”, or have underwriters and AE's told you that "this is their money, and their rules"?, Or how it was just a matter of their letting them “handle the situation”?
Have they ever said “just sign this here” or “just show up at title” or "it's a no doc"? Yes!

Lenders gave you assurances for you not to worry ,“this is just our program and this is simply how it works”.

Believe it or not, at times those “NO Doc Loans” actually became “stated” and you never knew it. No one ever asked you what you made or where you worked, because you thought that it was a no doc loan. You never looked at the paperwork because your “licensed professional” loan person or processor who is supposed to know all the rules and laws and follow those rules took care of everything for you, and they believed the lender, and thought it was all OK. "cause its the lenders' money and their rules". and its all OK.

Of course then there is the lenders explanation of occupancy. I've even heard that it “doesn't matter” either. However that doesn't quite seem right. You get a little confused when you hear that, and so you ask someone to explain it to you and it's all over the board.

So, if this has happened to you as a buyer, borrower, broker, loan officer, underwriter, processor, AE, then I need to hear from you. It is our only protection as the witch hunt continues.

I have been told on multiple occasions and by multiple companies, including processors, loan officers, AE's, underwriters, supervisors & and brokers that to certain companies, and under certain loan programs, that it “doesn't matter” on a whole lot of matters. That each lender has its own multitude of programs and specials, and that they are changing all the time. So you call and check the criteria, the guidelines, you make sure that you fit into their program. The programs can change at anytime and if you do not fit their program you and your loan officer start calling other companies day after day, seeking for those “niche programs” that are magical and that you fit the criteria for. This was not always a simple task, and it would certainly prove that one was looking for the programs they fit into.

Just the other day I had an argument with an appraiser that was mis-quoting Fannie Mae guidelines. The appraiser called me to get some information about a condominium complex. I told him that less than 3% where owner occupied. He was saying all the things I've heard before. For example all you need to do for owner occupied is either “spend a night there” or “store personal belongings” or “don't rent out to unrelated persons” that it is “owner occupied”, he actually added another rule for owner occupied, stating that you could still rent it out, as long as you spent a night there, or stored some of your items there, because it would be owner occupied. I said, "hey I’ve learned that is not true", and tried to reason with the appraiser that he should write things as they are. He said that the HOA would not give him the owner occupied information that he needed. He then tried to split hairs between what owner occupancy was and primary residency was, I tried in vain to explain that he should call Freddie Mac and just ask them, or go to their web-site and look it up. I encourages him not to get in trouble, or get his buyer into a condo that dosn't qualify to be financed. It does get a little confusing because lenders call these loans “owner occupied loans” not primary residence loans, yet tucked away with in a good 8 hours reading at closing is the definition of primary residence according to your lender. So for a month you’ve have been explained that these are owner occupied loans and that you just need to store some boxes at the residence, and now if you read this completely, it will be confusing. At times title companies think they cover this issue as they point to the headline "Occupancy".

So lenders can you please rename your loan programs as “primary residence loans” instead of "owner occupied loans". Stated loans should be named “actual income and assets, not verified". Primary residence according to some state laws say that you can have a primary residence that you claim and never live there. Confusing?

The problem continues for Mortgage Brokers, loan officers, processors and the borrower, because Lenders lie. You can look up Freddie Macs guidelines on line, and with $5 trillion in debt that Freddie Mac currently has, I would bank that your lender is going to sell your special niche loan product that they only have, to Freddie Mac, and that your lender really does not have that “niche program” that you have been hearing about.

However knowing Freddie Macs guidelines still does not apply to all those people still hearing from lenders that those guidelines do not apply to them, and their special niche loan product. Lets do this all over again, why don't these guidelines apply? Because this is the lenders own money and their own programs, and here we go again. What are borrowers, and brokers and loan officers to believe?

Beware! All those No Doc & No Doc / Stated Hybrids are trouble!

Few people look at their loan package because it is so cumbersome and has been prepared for them by an “expert”. Title sets a 30 min to an hour appointment, for you to read 8 hours worth of reading contracts the legalese language that you don't understand.

You trust that every thing's OK, you told everyone the truth, why read the fine print, you understand what was told to you, and even so, if you look at your loan package, it may not resemble anything that you said.

You have no proof of what was done, or what you said, or what was said to you, all there that binds you is your signature.

I wish I had taped every call. I just happened to tape one call that will prove my innocence.

A warning to loan officers" Where are all those “state to qualify” programs that your friendly lender had? Most likely sitting with Freddie Mac or Fannie Mae, or sold to other banks that have no idea of that “Special Niche Program” your original lender had.

I am just beginning to compile a list of processors, borrowers; loan officers, brokers, lenders, AE's, Supervisors, that will come clean and tell it as it really was, and I need you as well.

I need copies of your old program sheets, any taped phone calls, emails, any correspondence you have had regarding these loan programs. I am looking for 100 people to come to congress and tell it as it was.

Another Part of The Problem and How The Economy Fell Apart.
Our nations top 100 builders were gluttons, liars and plain greedy. They over built, lied about their products, and markets. At the same time newspapers, TV, Radio, Internet, and so many of us did speculate in real estate due to all the lures over federally broadcast radio and television.
It's the American Way, to Dream Big. Most just believed that things were the way they were presented to us, from the great loan programs, to the great markets.

So what to do? Unite together and get this proof over to Congress.

Let us start right now and stop this craziness! Let’s hold the Lender accountable!

As the market has turned, many, including myself are losing property. I can't sell because so many empty homes are out there, and people are waiting for the market to drop lower. I know I can't hold on and neither can most people it seems.

Dammed if you do try to better your living situation and finances, and dammed if you don't. Why was the public feed all this misinformation about the market anyway? Because it suited the specific agendas of banks, of the top 100 builders, mortgage companies, lenders, stock trades, and other speculators.

Builders such as DR Horton built nearly 250,000 homes and received $85 billion over the past 6 years. Lennar built nearly 220,000 homes and received nearly $75 billion. Pulte built nearly 230,000 homes and received almost $75 billion. That’s just a small sample. Just keep going down the builder top 100 list and see what was made and that’s not even to mention all the smaller builders. We have enough homes here in the USA to last past 2014; if not one more home was built.

It seems that those regular people who dare to plan, desire to succeed, and believed the experts, thinking that they are looking ahead, in their desire to follow the American Dream are now getting ridiculed in the media, as well as targeted by the legal system.

The giants, "Our Nations Top Builders" made their money, and left everyone in chaos. Many of the CEO's were paid huge bonuses over the past 5 years of hundreds of millions. No one is going after them, even though their mortgage companies committed fraud, and manipulated the market. The experts now state, that the “real estate investors should have known". Known what? Known that our economy was false, that the housing market was inflated, that builders overbuilt? Investors should have known that builders would continue to overbuild and saturate the market, so that the housing market would plummet, and we'd lose all of our equity? How should we have known that the dollar would plummet against foreign currencies? Well we all know now even though as recent as 2007 the media was saying that Utah's housing market was increasing 17% to 32% per year. That is what experts said in 2007.

So now the federal government bails out certain privileged builders, lenders, and some smart homeowners. Exactly how is this once more the real estate investors fault? Simply put the USA has too many homes, the supply is too great.

I am not a loan officer, just someone that wanted to solve problems and desired to make a buck in real estate. I wanted to know what could and could not be done, and to hear it first hand, directly from the lender, I took this extra precaution to make sure I was within the guidelines. I wanted to do things right, and I hired experts. I wanted to see first hand how things worked. I believed that all these lenders where indeed presenting their rules as they really were. I believed all the lender rate sheets and flyer's and the magical “no doc” and “stated” loans. I believed lenders when they said that this was “their money and their rules”. I believed in the American Dream.

Sadly, I recommended people to these loan programs. I thought these programs were a blessing, an honest avenue that solved a lot of problems and made purchasing property easy and possible for anyone with a pulse. In fact I was told that “anyone with a pulse” qualified for these loans. I was told this time and time again at times by the lenders, processors and loan officers, AE's, even underwriters.

Your friendly loan officer writes loans that fit their lender’s and or investor’s guidelines. Most loan officers are honest, they do what they are told is permitted. On average your broker has hundreds of programs and dozens of Lenders/Investors. Most of these guidelines are verbally presented to the loan officers, and other guidelines conditionally written upon a checklist that the Lender gives to the broker/loan officer. I have been in the same room and heard some of those lenders lying to loan officers and processors. For the large part loan officers have been lied to by the Lenders Account Representatives, and at times underwriters, that explain to the loan officers how the programs work and what is required. The lies additionally involve the Investors, Underwriters, and at times supervisors. I have been lied to many times and by many lenders. Many of the loan officers have been lied to as well by the actual lender and or investor in my presence. I have asked for what they have said in writing at times and asked for the actual guidelines and most of those lenders do not have them. Why? Why is most everything verbal? It should be a law that all guidelines accompany the loan application, instead of just a condition sheet.

I have emails from Lenders and Investors stating that they do not have any written guidelines. How convenient. The Lender tells the loan officer and the loan officer may or may not tell the borrower, so then no one actually possesses a copy of the guidelines. Who would think that the lender is lying, and setting up brokers and loan officers and well as the borrower to face legal and or criminal complaints. Lenders state that these special “no doc” and “stated” programs are their own “niche stated programs”. Fortunately I happened to have saved one copy of the guidelines of a very popular lender, and from one of those banks/lenders/investors. Their stated program is incriminating and shows the lenders deceit in trapping unsuspected brokers, loan officers, and borrowers. The lender in no way relied on the income, job, assets, or down payments to issue these loans.

However can a borrower commit fraud when that borrower is told and believes that this is the “lenders money and rules”? Is it fraud when the borrower acts in accordance with what that borrower believes to be true, and permitted? Is it fraud when the borrower does , as is told to them by the lending company, and the borrower does as instructed by the company that is loaning the money?

Lenders claim that the borrower is borrowing the lenders own money and the lender sets the rules. When in fact this is usually NOT the case. They say this in order to make the borrower, loan officer and broker think that the lender has some special program to offer that other companies do not have. This gives the loan officer and borrower a reason to use that specific lending company instead of just taking every single loan directly to Freddie Mac. You see the lender claims programs offering special criteria regarding occupancy, second homes, rental property, stated income and assets programs, down-payments, credits, no doc, gifted down payment programs, credited commissions, and credited sellers contributions and concessions, rental contracts, deposits, or don’t ask criteria. We are all told that it is the Lenders money and the Lenders rules and therefore just do what the lender says and everything will be perfect.

The lender did not rely on the borrower’s mis-information. The lender created that mis-information and presented to the loan officer and borrower that this is how this program and this lender works. The dirty hands and the fraud belong to the lender, the inventor and petitioner of these loan programs. To complicate matters more and to show criminal intent, the lenders then sell these falsified loans to unsuspecting third parties that have no clue of these “special niche products” and what the Lender told the borrower. This leaves the lenders own workers, and then the broker, the loan officers and processors and the borrower to suffer grief and to be at risk of being involved in civil legal actions, and maybe even charged with crimes. It is unthinkable, it is criminal. It is time that the truth is exposed. While some Lenders may not have been acting in this manner large portions have and to degrees, and this has been the norm for 12 years.

The government needs to take over residential lending. They need to place ads over TV and Radio explaining what is and what is not legal. Since all of these loans end up with our government taking the hit in the end, it would be wise to start this education process now.

So, instead of arresting people for doing what they thought to be legal let’s try educating people. State and Federal agencies have formed task force that actually tell people that it does not matter if the lender lied to them, and explained it this way, only that they signed, and that innocent, contributing citizens; parents, mothers, fathers, sisters, brothers, sons and daughters have become “the fall guy” people are being unnecessarily harmed and this needs to stop.

Where is the representation for the borrower, our citizens? How is the government protecting them? There is no protection. The government simply says, "YOU ARE GUILTY" plead guilty and take 15 years because there here is your signature, and it does not matter if you thought it was the program, or we will give you 30 years.

Something has to change.

Yes there are crooked loan officers too, as well as crooked processors. The borrower should not pay the price for those crooks either.

However there are a large portion of lying mortgage companies, lenders, banks, with fraudulent programs aimed at defrauding the borrower and buyer of the note, and this starts from the top.

Now that these lenders see their loans are defaulting, they blame the borrower, the one that has little chance to defend themselves. The ones that lived the American Dream, the ones that relied on the strength of our economy, listening over federally broadcasting media, listened to the experts, and trusted the lender.

There was one time when I called the lender after some loans had closed, and luckily I emailed them as well. I was sent an article concerning “stated loans” that was sent to me from a loan officer that was blackmailing me. I had fired her for putting false information on loan applications that has to do with a VOR. My only interaction with these loans and the application was paying her as an expert in order to make sure things were done right, and legal. Anyway this article showed people going to prison. For stated income loans. I was in shock, bewildered and frankly scared. I called up the processor and several other loan officers and showed them this article, all thought that something more must have happened. none of them were concerned about this article. I wrote a letter to the lender and questioned their “stated loan” programs and the danger and potential problems, including having their underwriters changing loan information. I asked the lender to call me back. I was called back by the underwriter of this lender, even though the letter went to her supervisor. The underwriter called me back instead and told me that these stated loans and exaggerated incomes and assets were their loan programs. They were “stated to qualify” and had nothing to do with reality. (These were to be “No Doc” loans and were changed along the way,) I found out later that the borrowers never saw the loan applications and or closing docs.
So this particular lender actually had their underwriter meet with the loan officer and processors and the underwriter instructed them as to how their stated programs was much like a No Doc. I had meet with the underwriter and was explained that all the incomes should be raised up another $20K. We were told that been told this by this company for many months before this particular transaction took place that these were “liar’s loans” and that numbers and job descriptions were simply “made up” in order to fit their automated system. I was as well told months prior with this company and a processor that had worked exclusively with this lender, “that owner occupied was, throwing some bags or boxes in the garage, however you could not rent to strangers for a while”. The underwriter on tape went on to say that nothing is wrong with the loans, in fact the lender doesn’t even care about occupancy either. This underwriter had previously cleared everything with her supervisor on several occasions, "the ability to pay back the loan was not a consideration", that is a word for word quote from the underwriter and her supervisor on a previous call. At the very end of this conversation the underwriter would contradict herself to say as long as the loans did not default, there was no problem. I then called the president of this loan company and their fraud unit and asked them to call me back. Others called them as well with the same concerns. We found that in spite of their claims of these loans being their own special “niche programs” and they would not be sold at one time, and then they would be sold to their one investor at a later time, that they had sold the loans to Freddie Mac and other unsuspecting banks after knowing the loans had problems... much more. Luckily for some reason, that call from the underwriter happen to be caught on tape, I was blessed to have my tape recorder on when that underwriter called me. I do not know where I would be if I did not have that tape
Posted by Peace&Courage at 10:35 AM 0 comments
Tuesday, August 26, 2008
Remember All Those Great No Doc & State To Qualify Portfolio Programs?
Well your lender doesn't remember those programs, and in fact they act like they never existed!

What does this mean to you? Well it could mean prison time, and being kept away from your family!

Have you ever heard that it “doesn't matter what income you make”, or have underwriters and AE's told you that "this is their money, and their rules", or how it was just a matter of their letting them “handle the situation”. Have they ever said “just sign this here” or “just show up at title” or "it's a no doc"? Yes! Lenders gave you assurances you not to worry ,“this is just our program and this is simply how it works”. Believe it or not, at times the “NO Docs” actually became “stated” and you never knew it. You never looked at the paperwork because your “licensed professional” loan person who is supposed to know all the rules and laws and follow those rules took care of everything for you, and they believed the lender, and thought it was all OK.

Of course then there is the lenders explanation of occupancy. I've even heard that it “doesn't matter” either. However that doesn't quite seem right. You get a little confused when you hear that, and so you ask someone to explain it to you and it's all over the board.

So, if this has happened to you as a buyer, borrower, broker, loan officer, underwriter, processor, AE, then I need to hear from you. It is our only protection as the witch hunt continues.

I have been told on multiple occasions and by multiple companies, including processors, loan officers, AE's, underwriters, supervisors & and brokers that to certain companies, and under certain loan programs, that it “doesn't matter” on a whole lot of matters. That each lender has its own multitude of programs and specials, and that they are changing all the time. So you call and check the criteria, you make sure that you fit into their program. The programs can change at anytime and if you do not fit their program you and your loan officer start calling other companies day after day, seeking for those “niche programs” that are magical and that you fit the criteria for. This was not always a simple task.

In fact today I had an argument with an appraiser that was mis-quoting Fannie Mae guidelines. He was saying all the things I've heard before. For example all you need to do for owner occupied is either “spend a night there” or “store personal belongings” or “don't rent out to unrelated persons” that it is “owner occupied”. However that may or may not be true. Primary residence according to what I have since learned is confused with owner occupied and the two cannot could not be the same. Even though on many occasions I have heard the same definitions used to define both. You can look up Freddie Macs guidelines on line, and with $5 trillion in debt that Freddie Mac currently has, I would bank that your lender is going to sell your special loan to Freddie Mac, and that your lender really does not have that “niche program” that you have been hearing about.

Beware! All those No Doc & No Doc / Stated Hybrids are trouble!

Few people look at their loan package because it is so cumbersome and has been prepared for them by an “expert”.

You trust that every thing's OK, you told everyone the truth, and even so, if you look at your loan package, it may not resemble anything that you said.

You have no proof of what was done, or what you said, or what was said to you, all there is that binds you is your signature.

I wish I had taped every call. I just happened to tape one call that will prove my innocence.

Where are all those “state to qualify” programs that your friendly lender had? Most likely sitting with Freddie Mac or Fannie Mae, or sold to other banks that have no idea of that “Special Niche Program” your original lender had.

I am just beginning to compile a list of processors, borrowers; loan officers, brokers, lenders, AE's, Supervisors, that will come clean and tell it as it really was, and I need you as well.

I need copies of your old program sheets, any taped phone calls, emails, any correspondence you have had regarding these loan programs. I am looking for 100 people to come to congress and tell it as it was.

Now the economy fell apart. Our nations top 100 builders were gluttons, liars and plain greedy. They over built, lied about their products, and markets. At the same time newspapers, TV, Radio, Internet, and so many of us did speculate in real estate due to all the lures over federally broadcast radio and television. It's the American Way, to Dream Big. Most just believed that things were the way they were presented to us, from the great loan programs, to the great markets.

So what to do? Unite together and get this proof over to Congress.

Let us start right now and stop this craziness! Let’s hold the Lender accountable!

As the market has turned, many, including myself are losing property. I can't sell because so many empty homes are out there, and people are waiting for the market to drop lower. I know I can't hold on and neither can most people it seems.

Dammed if you do try to better your living situation and finances, and dammed if you don't. Why was the public feed all this misinformation about the market anyway? Because it suited the specific agendas of the top 100 builders, mortgage companies, lenders, stock trades, and other speculators.

Builders such as DR Horton built nearly 250,000 homes and received $85 billion over the past 6 years. Lennar built nearly 220,000 homes and received nearly $75 billion. Pulte built nearly 230,000 homes and received almost $75 billion. That’s just a small sample. Just keep going down the builder top 100 list and see what was made and that’s not even to mention all the smaller builders. We have enough homes here in the USA to last past 2014; if not one more home was built.

It seems that those regular people who dare to plan, desire to succeed, and believed the experts, thinking that they are looking ahead, in their desire to follow the American Dream are now getting ridiculed in the media, as well as targeted by the legal system.

The giants, "Our Nations Top Builders" made their money, and left everyone in chaos. Many of the CEO's were paid huge bonuses over the past 5 years of hundreds of millions. No one is going after them, even though their mortgage companies committed fraud, and manipulated the market. The experts now state, that the “real estate investors should have known". Known what? Known that our economy was false, that the housing market was inflated, that builders overbuilt? Investors should have known that builders would continue to overbuild and saturate the market, so that the housing market would plummet, and we'd lose all of our equity? How should we have known that the dollar would plummet against foreign currencies? Well we all know now even though as recent as 2007 the media was saying that Utah's housing market was increasing 17% to 32% per year. That is what experts said in 2007.

So now the federal government bails out certain privileged builders, lenders, and some smart homeowners. Exactly how is this once more the real estate investors fault? Simply put the USA has too many homes, the supply is too great.

I am not a loan officer, just someone that wanted to solve problems and desired to make a buck in real estate. I wanted to know what could and could not be done, and to make sure I was within the guidelines. I wanted to do things right, and I hired experts. I wanted to see first hand how things worked. I believed that all these lenders where indeed presenting their rules as they really were. I believed all the lender rate sheets and flyer's and the magical “no doc” and “stated” loans. I believed lenders when they said that this was “their money and their rules”. I believed in the American Dream.

Sadly, I recommended people to these loan programs. I thought these programs were a blessing, an honest avenue that solved a lot of problems and made purchasing property easy and possible for anyone with a pulse. In fact I was told that “anyone with a pulse” qualified for these loans. I was told this time and time again by the lenders, processors and loan officers, AE's, even underwriters.

Your friendly loan officer writes loans that fit their lender’s and or investor’s guidelines. Most loan officers are honest, they do what they are told is permitted. On average your broker has hundreds of programs and dozens of Lenders/Investors. Most of these guidelines are verbally presented to the loan officers, and other guidelines conditionally written upon a checklist that the Lender gives to the broker/loan officer. I have been in the same room and heard some of those lenders lying to loan officers and processors. For the large part loan officers have been lied to by the Lenders Account Representatives, and at times underwriters, that explain to the loan officers how the programs work and what is required. The lies additionally involve the Investors, Underwriters, and at times supervisors. I have been lied to many times and by many lenders. Many of the loan officers have been lied to as well by the actual lender and or investor in my presence. I have asked for what they have said in writing at times and asked for the actual guidelines and most of those lenders do not have them. Why? Why is most everything verbal? It should be a law that all guidelines accompany the loan application.

I have emails from Lenders and Investors stating that they do not have any written guidelines. How convenient. The Lender tells the loan officer and the loan officer may or may not tell the borrower, so then no one actually possesses a copy of the guidelines. Who would think that the lender is lying? Lenders state that these special “no doc” and “stated” programs are their own “niche stated programs”. Fortunately I happened to have saved one copy of the guidelines of a very popular lender, and from one of those banks/lenders/investors. Their stated program is incriminating and shows the lenders deceit in trapping unsuspected brokers, loan officers, and borrowers. The lender in no way relied on the income, job, assets, or down payments to issue these loans.

However can a borrower commit fraud when that borrower is told and believes that this is the “lenders money and rules”? Is it fraud when the borrower acts in accordance with what that borrower believes to be true, and permitted? Is it fraud when the borrower does , as is told to them by the lending company, and the borrower does as instructed by the company that is loaning the money?

Lenders claim that the borrower is borrowing the lenders own money and the lender sets the rules. When in fact this is usually NOT the case. They say this in order to make the borrower, loan officer and broker think that the lender has some special program to offer that other companies do not have. This gives the loan officer and borrower a reason to use the lending company instead of just taking every single loan directly to Freddie Mac. You see the lender claims programs offering special criteria regarding occupancy, second homes, rental property, stated income and assets programs, no doc, gifted down payment programs, credited commissions, and credited sellers contributions and concessions, or don’t ask criteria. We are all told that it is the Lenders money and the Lenders rules and therefore just do what the lender says and everything will be perfect.

The lender did not rely on the borrower’s mis-information. The lender created that mis-information and presented to the loan officer and borrower that this is how this program and this lender works. The dirty hands and the fraud belong to the lender, the inventor and petitioner of these loan programs. To complicate matters more and to show criminal intent, the lenders then sell these falsified loans to unsuspecting third parties that have no clue of these “special niche products” and what the Lender told the borrower. This leaves the lenders own workers, and then the broker, the loan officers and processors and the borrower to suffer grief and to be at risk of being involved in civil legal actions, and maybe even charged with crimes. It is unthinkable, it is criminal. It is time that the truth is exposed. While some Lenders may not have been acting in this manner large portions have, and this has been the norm for 12 years.

The government needs to take over residential lending. They need to place ads over TV and Radio explaining what is and what is not legal. Since all of these loans end up with our government taking the hit in the end, it would be wise to start this education process now.

So, instead of arresting people for doing what they thought to be legal let’s try educating people. State and Federal agencies have formed task force that actually tell people that it does not matter if the lender lied to them, and explained it this way, only that they signed, and that innocent, contributing citizens, parents, mothers, fathers, sisters, brothers, and including the fall guy or real estate investor, people are being unnecessarily harmed and this needs to stop.

Where is the representation for the borrower, our citizens? How is the government protecting them? There is no protection. The government simply says, "YOU ARE GUILTY" plead guilty and take 15 years because there here is your signature, and it does not matter if you thought it was the program, or we will give you 30 years.

Something has to change.

Yes there are crooked loan officers too, as well as crooked processors. The borrower should not pay the price for those crooks either.

However there are a large portion of lying mortgage companies, lenders, banks, with fraudulent programs aimed at defrauding the borrower and buyer of the note.

Now that these lenders see their loans are defaulting, they blame the borrower, the one that has little chance to defend themselves. The ones that lived the American Dream, the ones that relied on the strength of our economy, listening over federally broadcasting media, listened to the experts, and trusted the lender..

There was one time when I called the lender after some loans had closed, and luckily I emailed them as well. I was sent an article concerning “stated loans” from a loan officer that was blackmailing me, the article showed people going to prison. I was in shock, bewildered and frankly scared. I called up the processor and several other loan officers and showed them this article, all thought that something more must have happened. I wrote a letter to the lender and questioned their “stated loan” programs and the danger and potential problems, including having their underwriters change loan information. I asked the lender to call me back. I was called back by the underwriter of this lender, even though the letter went to her supervisor. The underwriter called me back instead and told me that these stated loans and exaggerated incomes and assets were their loan programs. They were “stated to qualify” and had nothing to do with reality. (These were to be “No Doc” loans and were changed along the way, found out later that the borrowers never saw the loan applications). I had been told this by this company for many months before this particular transaction took place that these were “liar’s loans” and that numbers and job descriptions were simply “made up” in order to fit their automated system. I was as well told that owner occupied was, throwing some bags or boxes in the garage, however you could not rent to strangers for a while. The underwriter on tape went on to say that nothing is wrong with the loans, in fact the lender doesn’t even care about occupancy either. This underwriter had previously cleared everything with her supervisor on several occasions, "the ability to pay back the loan was not a consideration", that is a word for word quote from the underwriter and her supervisor on a previous call. At the very end of this conversation the underwriter would contradict herself to say as long as the loans did not default, there was no problem. I then called the president of this loan company and their fraud unit and asked them to call me back. Others called them as well with the same concerns. We found that in spite of their claims of these loans being their own special “niche programs” and they would not be sold at one time, and then they would be sold to their one investor at a later time, that they had sold the loans to Freddie Mac and other unsuspecting banks after knowing the loans had problems... much more. Luckily for some reason, that call from the underwriter happen to be caught on tape, I was blessed to have my tape recorder on when that underwriter called me. I do not know where I would be if I did not have that tape.

As a post note: I am not a loan officer, just someone that wanted to solve problems, help others, cut down on cost, and desired to make a buck in real estate. I wanted to know what could and could not be done, and to make sure I was within the guidelines. I wanted to do things rights and hired experts. I wanted to see first hand how things worked. I believed that all these lenders where indeed presenting their rules as they really were. I believed all the lender rate sheets and flyer's and the magical no doc and stated loans. I believed lenders when they said that this was their money and their rules. I believed in the American Dream.

Sadly, I recommended other people to these loan programs. I thought these programs were a blessing, an honest avenue that solved a lot of problems and made purchasing property easy and possible for anyone with a pulse. In fact I was told that anyone with a pulse qualified for these loans. I was told this time and time again by the lenders, processors and loan officers, AE's, even underwriters, and I think they all believed what they were saying was true.

I have emails from Lenders and Investors stating that they do not have any written guidelines, How convenient. The Lender tells the loan officer and the loan officer may or may not tell the borrower, so then no one actually possesses a copy of the guidelines. Who would think that the lender is lying? Lenders state that these special no doc and stated programs are their own niche stated programs. I happened to have saved one copy of the guidelines of a very popular lender, and from one of those banks/lenders/investors their stated program is incriminating and shows the lenders deceit in trapping unsuspected brokers, loan officers, and borrowers. The lender in no way relied on the income, job, assets, or down payments to issue these loans.

However can can a borrower commit fraud when that borrower is told and believes that this is the lenders money and rules, and acts in accordance with what that borrower believes to be true, as portrayed by the lending company, and does as instructed by the company that is loaning the money?

From the lenders explanation of owner occupancy, second homes and rental property to their stated income and assets programs, to gifted and paid for by commission down payments, or credited commissions or sellers contributions, all are told that it is the Lenders money and the Lenders rules and therefore there is no fraud on the borrowers behalf under this circumstance.

The lender did not rely on the borrowers mis-information. The lender created that mis-information and presented to the borrower that this is how this program and the lender worked. The dirty hands belong to the inventor and petitioner of these loan programs, yes the lender themselves. To complicate matters worse and to show criminal intent, the lenders sell these falsified loans to unsuspecting third party's that have no clue of these special niche products, and the lenders representations, in addition the lender entraps their own workers, and then the broker, the loan officers and processors and the borrower to suffer grief and to be at risk of being involved in civil legal actions, and charged with crimes. It is unthinkable, it is criminal. It is time that the truth be exposed. While some companies may not have been acting in this manner, a large portion have, and this has been the norm for 12 years.

The government needs to take over residential lending, they need to place ads explaining what is not legal. And due to the fact that all these loans end up with our government taking the hit in the end, it would be wise to start this ads now.

So instead of arresting people for doing what they thought to be legal. Educating people and finding the truth would be appropriate. The task force actually tells people that it does not matter if the lender lied, only that they signed, and so innocent, contributing citizens, parents, mothers, fathers, sisters, brothers, "people are being harmed and this needs to stop.

Where is the representation for the borrower, our citizens? How is the government protecting them? There is no protection. Task force simply say "YOU ARE GUILTY"

Something has to change.

Yes there are crooked Loan officers too, as well as crooked processors, and the borrower should not pay for their mistakes either.

However there are a large portion of lying mortgage companies, lenders, banks, and investors with fraudulent programs aimed at defrauding the borrower and buyer of the note.

Now that these lenders see their loans are defaulting, they blame the borrower, the one that has little chance to defend themselves. The ones that lived the American Dream, the ones that relied on the strength of our economy, listening over federally broadcasting media, to the experts.

At one time I called the lender after some loans had closed, and luckily I emailed them as well. I was sent an article concerning stated loans and people going to prison. I was in shock, bewildered and frankly scared. I called up the processor and several loan officers and showed them this article, all thought that something more must have happened. I wrote a letter to the lender and questioned their stated loan programs and the danger and potential problems. I asked them to call me back. I was called back by the underwriter of this lender, even though the letter went to her supervisor. The underwriter called me back instead and told me that these stated loans and exaggerated incomes and assets were their loan programs, they were stated to qualify and had nothing to do with reality. (these were to be No Doc loans and were changed along the way) I had been told this by this company for a long time that the processor was to just backed in numbers, that owner occupied was, throwing some bags or boxes in the garage, however you could not rent to strangers. The underwriter went on to say that nothing is wrong with the loans. This underwriter has previously cleared everything with her supervisor, "the ability to pay back the loan was not a consideration", that is a word for word quote. At the very end of this conversation the underwriter would contradict herself to say as long as the loans did not default, there was no problem. I called the president of this lender and their fraud unit. Others called them as well, we found out that they had sold the loans to Freddie Mac and other unsuspecting banks anyway and after knowing the loans had problems... much more. Luckily for some reason, that call from the underwriter happen to be caught on tape, I was blessed to have my tape recorder on when that underwriter called me. I do not know where I would be if I did not have that tape.

Surly God was watching over me, and provided away to prove what had transpired. Won't they and congresses be enlightened when they hear that tape in court.

Interesting Article Countrywide whistle blower reports 'liar loans' This is no surprise I have seen this and more happen.

Former regional manager sues mortgage company for wrongful termination
Countrywide's 'shady' corporate culture
June 30: A regional manager from inside the nation's largest mortgage lender speaks out about possible wrongdoings by the company which cost families their homes. NBC's Lisa Myers reports.

Former Countrywide manager speaks out
June 30: Former Countrywide Regional Vice President Mark Zachary says he was fired for raising questions about the mortgage giant's lending practices. An exclusive interview with NBC's Lisa Myers.

Countrywide's response to NBC

The following represents the entirety of Countrywide's responses to NBC's investigation:

May 12, 2008

"Contrary to allegations by former employees, Countrywide’s lending operations are prudently and effectively managed, as evidenced by delinquency and foreclosure rates that compare favorably to industry averages. These alleged incidents do not reflect the conduct of tens of thousands of dedicated employees who have helped millions of families purchase and stay in their homes. Countrywide’s ethical standards are rigorously enforced to prevent misconduct and when breaches of these standards are discovered, disciplinary action, including termination, is taken against those involved."

May 12, 2008

"Countrywide does not generally comment on pending litigation. During Mr. Zachary’s employment with Countrywide, the company investigated each of his claims and found no merit to his accusations. REALLY I DOUBT THAT Countrywide has policies and procedures in place that aim to prevent the type of activities Mr. Zachary is alleging. Countrywide stands behind its systems and processes and will defend this case vigorously."

"Countrywide denies any allegations that Mr. Zachary’s termination was related to any concerns he raised. In fact, Countrywide has a firm policy against any such action. Here is the policy, as discussed in the company’s Employee Handbook."

"IT IS A VIOLATION OF COMPANY POLICY TO INTIMIDATE OR IMPOSE ANY OTHER FORM OF RETALIATION ON AN EMPLOYEE WHO REPORTS ANY ACTUAL OR SUSPECTED ILLEGAL OR UNETHICAL CONDUCT."

May 15, 2008

"Mr. Zachary was terminated for poor performance and was not the subject of any retaliation."

"Mr. Zachary received verbal counseling on his performance, as well as written feedback in the form of his evaluation, before he first made allegations of impropriety."
"Mr. Zachary is motivated by self-interest, not the welfare of borrowers, as evidenced by his unsolicited offer to Countrywide to keep silent on these claims in return for a payment of nearly $1 million. Countrywide refused."

"Mr. Zachary was terminated for poor performance and was not the subject of any retaliation."

"Mr. Zachary received verbal counseling on his performance, as well as written feedback in the form of his evaluation, before he first made allegations of impropriety."

"Mr. Zachary is motivated by self-interest, not the welfare of borrowers, as evidenced by his unsolicited offer to Countrywide to keep silent on these claims in return for a payment of nearly $1 million. Countrywide refused."
By Lisa Myers, NBC News Senior Investigative Correspondent
Amna Nawaz, NBC Producer
updated 1:05 p.m. MT, Tues., July. 1, 2008

HOUSTON - Amid multiple federal investigations into potential wrongdoing at Countrywide, a former regional manager now says he tried to sound the alarm about improper conduct, and was ignored.

Mark Zachary, who'd been in the mortgage business for 12 years when he took a job at Countrywide in August 2006 as a regional vice president in Houston, says he found a corporate culture of shady, possibly illegal practices.

"You see some of the things that were going on and you just know that it's not right, " he said in an exclusive interview with NBC News. "It was, what do we do to get one more deal done. It doesn't matter how you get there, just how do you get one more deal done."

In a series of internal documents over the next nine months, Zachary says he repeatedly warned superiors about questionable practices:

-Inflating home appraisals—so buyers could borrow enough to cover closing costs...but end up owing more than the house was worth.
-Flipping loans—moving an unqualified buyer from a conventional loan to one that doesnt require documentation, knowing they couldn't afford it.
-Coaching borrowers—to overstate, even double, their income to qualify.

In fact, Zachary says certain loans were known as "liar loans." Why?

"Because the income stated on those loans generally is not a true representation of what that person normally makes," he said.

In February 2007, after six months on the job, Zachary warned superiors about the potential effects of bad lending practices, writing:

"In a market where there are more foreclosures and defaults than we care to talk about, I think part of that is because some builders and lenders are setting people up for further failure in life by putting them in loans and houses they do not belong in."

Were these practices the work of a couple of bad apples?

"No, not at all," says Zachary. "It comes down, I think from the very top that you get a loan done at any cost."

Zachary said these practices ultimately misled investors—about the safety and value of these loans, and hurt borrowers—who were put in loans they couldn't afford to repay.

Countrywide denies Zachary's allegations, saying it "investigated each of his claims and found no merit to his accusations."
Story continues below ↓advertisement

However, NBC News spoke to six other former Countrywide employees in different parts of the country who described the same culture and many of the same practices. Some even said that W-2's and other documents—including paystubs, lease agreements, and letters of verification—were falsified to clear loans.

A former loan officer—who runs a website criticizing Countrywide—said the more loans they made, the more they were paid...which created a culture of anything goes.

"I've seen supervisors stand over employees' shoulders and watch them, you know, change incomes and things like that to make the loan work," he said.

Customers say they saw it too. Lisa Blue says her countrywide loan officer told her to claim she made more than twice her actual income.

"I said I highly doubt an accounting manager makes a hundred thousand dollars anywhere," Blue said. "She was telling me to state stuff that was totally lies."

Zachary says after he took his concerns to senior management, and refused to approve unqualified borrowers to make his numbers, he was fired after 10 months on the job.

Countrywide disputes that. A spokeswoman says that Zachary was "terminated for poor performance," and that he "received verbal counselling on his performance, as well as written feedback in the form of his evaluation, before he first made allegations of impropriety."

But documents show Zachary began raising questions to Countrywide superiors about specific lending practices as early as September 2006, soon after joining the company.

In February 2007, Zachary received a good employee performance evaluation—indicating he was surpassing some expectations and not meeting others—but with no indications he was in any jeopardy of losing his job. Four months later, he was fired.

Zachary's lawyer, Philip Hilder, says his investigation shows the practices his client alleges were not necessarily confined to the Texas region, but may have been systemic. He dismisses Countrywide's claim that they have investigated Zachary's allegations.

"I don't think they properly investigated," says Hilder. "And I don't think they're gonna like the results when they do." So why is Zachary speaking out now?

"People are out in the streets because of lending practices that should a never been practiced," says Zachary. "I don't know what I can say to make that situation better, but what I can do is still go to work every day, and make sure, or try to make sure that it doesn't continue to happen."

Zachary is now suing Countrywide for wrongful termination.

Countrywide says Zachary is "motivated by self-interest." A spokeswoman claims Zachary offered not to go public with his allegations if the company paid him $1 million. Zachary's lawyer says that charge is "false and deceitful."

The Countrywide spokeswoman also says the company's "lending operations are prudently and effectively managed," and that "Countrywide's ethical standards are rigorously enforced."

There is so much more, yet the homeowner and real estate investor will be the ones to really pay. Borrowers at times pay for the lender to do an appraisal review, and borrowers think that lenders are looking out for them, however the lender in perhaps even more so eager for the borrower to receive that loan and home than the actual borrower. The lender takes no accountability, and the government is putting people in jail, based on ignorance and their need to be employed.

What is the real crime here? Whose looking out for the citizens? Whose looking out for those American Dreamers that decide to become Real Estate Investors?

Real Estate Investors are getting a bad rap, they were lied to by the lenders. They bought property to make a profit. They read the real estate books, they combined together to win, and that does not make this a scam, or wrong. Some got large commissions, some took out money at closing, some had co-partners where they agreed to use other peoples credit and it was all legal. Had the market been good, the outcome would have been sweet. The banks still the same used deceit, in providing programs and loan criteria that was falsified to the borrower, to loan officers & brokers.
Posted by Peace&Courage at 6:07 PM 0 comments
Remember All Those Great No Doc & State To Qualify Portfolio Programs?
Remember All Those Great No Doc & State To Qualify Portfolio Programs?
Well your lender doesn't remember those programs, and in fact they act like they never existed!

What does this mean to you? Well it could mean prison time, and being kept away from your family!

Have you ever heard that it “doesn't matter what income you make”, or have underwriters and AE's told you that "this is their money, and their rules", or how it was just a matter of their letting them “handle the situation” Have they ever said “just put this here” or “just show up” or "it's a no doc"? Then assurance you not to “worry this is just our program and this is simply how it works”. Believe it or not at times the “NO Docs” actually became “stated” and you never knew it. You never looked at the paperwork because your “licensed professional” loan person who is supposed to know all the rules and laws and follow them took care of it for you.

Of course then there is their explanation of occupancy. I've even heard that it “doesn't matter” either. However that doesn't quite seem right. So you ask someone to explain it too you and it's all over the board.

So, if this has happened to you as a buyer, borrower, broker, loan officer, underwriter, processor, AE, then I need to hear from you. It is our only protection as the witch hunt continues.

I have been told on multiple occasions and by multiple companies, including processors, loan officers, AE's, underwriters, supervisors & and brokers that to certain companies, and under certain loan programs, that it “doesn't matter” on a whole lot of matters. That each lender has its own multitude of programs and specials, and that they are changing all the time. So you call and see how they have changed and you call other companies day after day, seeking for those “niche programs” that are magical and that you fit the criteria for. This was not always a simple task.

In fact today I had an argument with an appraiser that was mis-quoting Fannie Mae guidelines. He was saying all the things I've heard before. For example all you need to do is “spend a night there” or “store personal belongings” or “don't rent out to unrelated persons” that it is “owner occupied”. However that may or may not be true. Primary residence according to what I have since learned is not the same as owner occupied and the two cannot be confused. Even though on many occasions I have heard the same definitions used to define both. You can look up Freddie Macs guidelines on line, and with $5 trillion in debt that Freddie Mac has, I would bank that your lender is going to sell to them, and that your lender really does not have that “niche program” that you have been hearing about.

Beware! All those No Doc & No Doc / Stated Hybrids are trouble!

Few people look at their loan package because it is so cumbersome and has been prepared for them by an “expert”.

You trust that every thing's OK, you told everyone the truth, and even so, if you look at your loan package, it may not resemble anything that you said.

You have no proof of what was done, or what you said, or what was said to you, all there is that binds you is your signature.

I wish I had taped every call. I just happened to tape one call that will prove my innocence.

Where are all those “state to qualify” programs that your friendly lender had? Most likely sitting with Freddie Mac or Fannie Mae, or sold to other banks that have no idea of that “Special Niche Program” your original lender had.

I am just beginning to compile a list of processors, borrowers, loan officers, brokers, lenders, AE's, Supervisors, that will come clean and tell it as it really was, and I need you as well.

I need copies of your old program sheets, any taped phone calls, emails any correspondence you have had regarding these loan programs . I am looking for 100 people to come to congress and tell it as it was.

Now the economy fell apart. Our nations top 100 builders were gluttons, liars and plain greedy. They over built, lied about their products, and markets. At the same time newspapers, TV, Radio, Internet, and so many of us did speculate in real estate due to all the lures over federally broadcast radio and television. It's the American Way, to Dream Big. Most were just believing that things were the way they were presented to us, from the great loan programs, to the great markets.

So what to do? Unite together and get this proof over to Congress.

Let us start right now and stop this craziness! Let’s hold the Lender accountable!

As the market has turned, many, including myself are losing property. I can't sell because so many empty homes are out there, and people are waiting for the market to go lower. I know I can't hold on and neither can most people it seems.

Dammed if you do try to better your living situation and finances, and dammed if you don't. Why was the public feed all this misinformation about the market anyway? Because it suited the specific agendas of the top 100 builders, mortgage companies, lenders, stock trades, and other speculators.

Builders such as DR Horton built nearly 250,000 homes and received $85 billion over the past 6 years. Lennar built nearly 220,000 homes and received nearly $75 billion. Pulte built nearly 230,000 homes and received almost $75 billion. That’s just a small sample. Just keep going down the builder top 100 list and see what was made and that’s not even to mention all the smaller builders. We have enough homes here in the USA to last past 2014; if not one more home was built.

It seems that those regular people who dare to plan, desire to succeed, and believe the experts, thinking that they are looking ahead, in their desire to follow the American Dream are now getting ridiculed in the media, as well as targeted by the legal system.

The giants, "Our Nations Top Builders" made their money, and left everyone in chaos. Many of the CEO's were paid huge bonuses over the past 5 years of hundreds of millions. No one is going after them, even though their mortgage companies committed fraud, and manipulated the market. The experts now state, that the “real estate investors should have known". Known what? Known that our economy was false, that the housing market was inflated, that builders overbuilt? Investors should have known that builders would continue to overbuild and saturate the market, so that the housing market would plummet, and we'd lose all of our equity? How should we have known that the dollar would plummet against foreign currencies? Well we all know now even though as recent as 2007 the media was saying that Utah's housing market was increasing 17% to 32% per year. That is what experts said in 2007.

So now the federal government bails out certain privileged builders, lenders, and some smart homeowners. Exactly how is this once more the real estate investors fault? Simply put the USA has too many homes, the supply is too great.

I am not a loan officer, just someone that wanted to solve problems and desired to make a buck in real estate. I wanted to know what could and could not be done, and to make sure I was within the guidelines. I wanted to do things right and hired experts. I wanted to see first hand how things worked. I believed that all these lenders where indeed presenting their rules as they really were. I believed all the lender rate sheets and flyer's and the magical “no doc” and “stated” loans. I believed lenders when they said that this was “their money and their rules”. I believed in the American Dream.

Sadly, I recommended people to these loan programs. I thought these programs were a blessing, an honest avenue that solved a lot of problems and made purchasing property easy and possible for anyone with a pulse. In fact I was told that “anyone with a pulse” qualified for these loans. I was told this time and time again by the lenders, processors and loan officers, AE's, even underwriters.

Your friendly loan officer writes loans that fit their lender’s and or investor’s guidelines. Most loan officers are honest, they do what they are told is permitted. On average your broker has hundreds of programs and dozens of Lenders/Investors. Most of these guidelines are verbally presented and other guidelines conditionally written upon a checklist that the Lender gives to the broker/loan officer. I have heard some of those loan officers have been lied too by the Lenders Account Representatives, and underwriters, that explain to the loan officers how the programs work and what is required. The lies additionally involve the Investors, Underwriters, and at times supervisors. I have been lied to many times and by many lenders. Many of the loan officers have been lied to by the actual lender and or investor in my presence. I have asked for what they have said in writing at times and asked for the actual guidelines and most of those lenders do not have them. Why? Why is most everything verbal? It should be a law that all guidelines accompany the loan application.

I have emails from Lenders and Investors stating that they do not have any written guidelines. How convenient. The Lender tells the loan officer and the loan officer may or may not tell the borrower, so then no one actually possesses a copy of the guidelines. Who would think that the lender is lying? Lenders state that these special “no doc” and “stated” programs are their own “niche stated programs”. Fortunately I happened to have saved one copy of the guidelines of a very popular lender, and from one of those banks/lenders/investors. Their stated program is incriminating and shows the lenders deceit in trapping unsuspected brokers, loan officers, and borrowers. The lender in no way relied on the income, job, assets, or down payments to issue these loans.

However can a borrower commit fraud when that borrower is told and believes that this is the “lenders money and rules”? Is it fraud when the borrower acts in accordance with what that borrower believes to be true, as is told to them by the lending company, and the borrower does as instructed by the company that is loaning the money?

Lenders claim that the borrower is borrowing the lenders own money and the lender sets the rules. When in fact this is usually NOT the case. They say this to make the borrower, loan office and broker think that the lender is something special and give the borrower a reason to use their company. The claims programs offering special criteria regarding occupancy, second homes, rental property, stated income and assets programs, No doc, gifted down payment programs, credited commissions and credited sellers contributions and concessions. We are all told that it is the Lenders money and the Lenders rules and therefore just do what the lender says and everything will be perfect.

The lender did not rely on the borrower’s mis-information. The lender created that mis-information and presented to the borrower that this is how this program and this lender works. The dirty hands and the fraud belong to the lender, the inventor and petitioner of these loan programs. To complicate matters more and to show criminal intent, the lenders then sell these falsified loans to unsuspecting third parties that have no clue of these “special niche products” and what the Lender told the borrower. This leaves the lenders own workers, and then the broker, the loan officers and processors and the borrower to suffer grief and to be at risk of being involved in civil legal actions, and maybe even charged with crimes. It is unthinkable, it is criminal. It is time that the truth is exposed. While some companies may not have been acting in this manner large portions have, and this has been the norm for 12 years.

The government needs to take over residential lending. They need to place ads explaining what is and what is not legal. Since all of these loans end up with our government taking the hit in the end, it would be wise to start this now.

So, instead of arresting people for doing what they thought to be legal let’s try educating people. Form a task force that actually tells people that it does not matter if the lender lied, only that they signed, and that innocent, contributing citizens, parents, mothers, fathers, sisters, brothers, people are being harmed and this needs to stop.

Where is the representation for the borrower, our citizens? How is the government protecting them? There is no protection. The government simply says, "YOU ARE GUILTY"

Something has to change.

Yes there are crooked Loan officers too, as well as crooked processors, and the borrower should not pay for their mistakes either.

However there are a large portion of lying mortgage companies, lenders, banks, and investors with fraudulent programs aimed at defrauding the borrower and buyer of the note.

Now that these lenders see their loans are defaulting, they blame the borrower, the one that has little chance to defend themselves. The ones that lived the American Dream, the ones that relied on the strength of our economy, listening over federally broadcasting media, listened to the experts.

There was one time when I called the lender after some loans had closed, and luckily I emailed them as well. I was sent an article concerning “stated loans” and people going to prison. I was in shock, bewildered and frankly scared. I called up the processor and several loan officers and showed them this article, all thought that something more must have happened. I wrote a letter to the lender and questioned their “stated loan” programs and the danger and potential problems. I asked them to call me back. I was called back by the underwriter of this lender, even though the letter went to her supervisor. The underwriter called me back instead and told me that these stated loans and exaggerated incomes and assets were their loan programs. They were “stated to qualify” and had nothing to do with reality. (These were to be “No Doc” loans and were changed along the way). I had been told this by this company for a many months before this particular transaction that these were “liar’s loans” and that numbers were simply “made up” in order to fit their criteria. That owner occupied was, throwing some bags or boxes in the garage, however you could not rent to strangers. The underwriter went on to say that nothing is wrong with the loans. This underwriter has previously cleared everything with her supervisor, "the ability to pay back the loan was not a consideration", that is a word for word quote from the underwriter and her supervisor. At the very end of this conversation the underwriter would contradict herself to say as long as the loans did not default, there was no problem. I then called the president of this loan company and their fraud unit and asked them to call me back. Others called them as well with the same concerns. We found that in spite of their claims of these loans being their own special “niche programs” and they would not be sold, that they had sold the loans to Freddie Mac and other unsuspecting banks after knowing the loans had problems... much more. Luckily for some reason, that call from the underwriter happen to be caught on tape, I was blessed to have my tape recorder on when that underwriter called me. I do not know where I would be if I did not have that tape.

As a post note: I am not a loan officer, just someone that wanted to solve problems and desired to make a buck in real estate. I wanted to know what could and could not be done, and to make sure I was within the guidelines. I wanted to do things rights and hired experts. I wanted to see first hand how things worked. I believed that all these lenders where indeed presenting their rules as they really were. I believed all the lender rate sheets and flyer's and the magical no doc and stated loans. I believed lenders when they said that this was their money and their rules. I believed in the American Dream.

Sadly, I recommended people to these loan programs. I thought these programs were a blessing, an honest avenue that solved a lot of problems and made purchasing property easy and possible for anyone with a pulse. In fact I was told that anyone with a pulse qualified for these loans. I was told this time and time again by the lenders, processors and loan officers, AE's, even underwriters.

Your friendly loan officer writes loans that fit their lenders and or investors guidelines, most loan officers are honest, they do what they are told is permitted. On average your broker has hundreds of programs and dozens of Lenders/Investors and most all these guidelines are verbally presented and others guidelines conditionally written upon a checklist that the Lender gives to the broker/loan officer. I have heard some of those loan officers been lied too by the Lenders Account Representatives, and underwriters, that explain to the loan officers how the programs work and what is required. The lies additionally involve the Investors Underwriters, and at times supervisors. I have been lied to many times and by many lenders. Many of the loan officers have been lied to by the actual lender and or investor in my presence. I have asked for in writing at times the actual guidelines and most of those lenders do not not have them. Why? Why is most everything verbal?It should be a law that all guidelines accompany the loan application.

I have emails from Lenders and Investors stating that they do not have any written guidelines, How convenient. The Lender tells the loan officer and the loan officer may or may not tell the borrower, so then no one actually possesses a copy of the guidelines. Who would think that the lender is lying? Lenders state that these special no doc and stated programs are their own niche stated programs. I happened to have saved one copy of the guidelines of a very popular lender, and from one of those banks/lenders/investors their stated program is incriminating and shows the lenders deceit in trapping unsuspected brokers, loan officers, and borrowers. The lender in no way relied on the income, job, assets, or down payments to issue these loans.

However can can a borrower commit fraud when that borrower is told and believes that this is the lenders money and rules, and acts in accordance with what that borrower believes to be true, as portrayed by the lending company, and does as instructed by the company that is loaning the money?

From the lenders explanation of owner occupancy, second homes and rental property to their stated income and assets programs, to gifted and paid for by commission down payments, or credited commissions or sellers contributions, all are told that it is the Lenders money and the Lenders rules and therefore there is no fraud on the borrowers behalf under this circumstance.

The lender did not rely on the borrowers mis-information. The lender created that mis-information and presented to the borrower that this is how this program and the lender worked. The dirty hands belong to the inventor and petitioner of these loan programs, yes the lender themselves. To complicate matters worse and to show criminal intent, the lenders sell these falsified loans to unsuspecting third party's that have no clue of these special niche products, and the lenders representations, in addition the lender entraps their own workers, and then the broker, the loan officers and processors and the borrower to suffer grief and to be at risk of being involved in civil legal actions, and charged with crimes. It is unthinkable, it is criminal. It is time that the truth be exposed. While some companies may not have been acting in this manner, a large portion have, and this has been the norm for 12 years.

The government needs to take over residential lending, they need to place ads explaining what is not legal. And due to the fact that all these loans end up with our government taking the hit in the end, it would be wise to start this ads now.

So instead of arresting people for doing what they thought to be legal. Educating people and finding the truth would be appropriate. The task force actually tells people that it does not matter if the lender lied, only that they signed, and so innocent, contributing citizens, parents, mothers, fathers, sisters, brothers, "people are being harmed and this needs to stop.

Where is the representation for the borrower, our citizens? How is the government protecting them? There is no protection. Task force simply say "YOU ARE GUILTY"

Something has to change.

Yes there are crooked Loan officers too, as well as crooked processors, and the borrower should not pay for their mistakes either.

However there are a large portion of lying mortgage companies, lenders, banks, and investors with fraudulent programs aimed at defrauding the borrower and buyer of the note.

Now that these lenders see their loans are defaulting, they blame the borrower, the one that has little chance to defend themselves. The ones that lived the American Dream, the ones that relied on the strength of our economy, listening over federally broadcasting media, to the experts.

At one time I called the lender after some loans had closed, and luckily I emailed them as well. I was sent an article concerning stated loans and people going to prison. I was in shock, bewildered and frankly scared. I called up the processor and several loan officers and showed them this article, all thought that something more must have happened. I wrote a letter to the lender and questioned their stated loan programs and the danger and potential problems. I asked them to call me back. I was called back by the underwriter of this lender, even though the letter went to her supervisor. The underwriter called me back instead and told me that these stated loans and exaggerated incomes and assets were their loan programs, they were stated to qualify and had nothing to do with reality. (these were to be No Doc loans and were changed along the way) I had been told this by this company for a long time that the processor was to just backed in numbers, that owner occupied was, throwing some bags or boxes in the garage, however you could not rent to strangers. The underwriter went on to say that nothing is wrong with the loans. This underwriter has previously cleared everything with her supervisor, "the ability to pay back the loan was not a consideration", that is a word for word quote. At the very end of this conversation the underwriter would contradict herself to say as long as the loans did not default, there was no problem. I called the president of this lender and their fraud unit. Others called them as well, we found out that they had sold the loans to Freddie Mac and other unsuspecting banks anyway and after knowing the loans had problems... much more. Luckily for some reason, that call from the underwriter happen to be caught on tape, I was blessed to have my tape recorder on when that underwriter called me. I do not know where I would be if I did not have that tape.

Surly God was watching over me, and provided away to prove what had transpired. Won't they and congresses be enlightened when they hear that tape in court.

Countrywide whistle blower reports 'liar loans'This is no surprize I have seen this and more happen.

Former regional manager sues mortgage company for wrongful termination

Countrywide's 'shady' corporate culture
June 30: A regional manager from inside the nation's largest mortgage lender speaks out about possible wrongdoings by the company which cost families their homes. NBC's Lisa Myers reports.

Former Countrywide manager speaks out
June 30: Former Countrywide Regional Vice President Mark Zachary says he was fired for raising questions about the mortgage giant's lending practices. An exclusive interview with NBC's Lisa Myers.

Countrywide's response to NBC

The following represents the entirety of Countrywide's responses to NBC's investigation:

May 12, 2008

"Contrary to allegations by former employees, Countrywide’s lending operations are prudently and effectively managed, as evidenced by delinquency and foreclosure rates that compare favorably to industry averages. These alleged incidents do not reflect the conduct of tens of thousands of dedicated employees who have helped millions of families purchase and stay in their homes. Countrywide’s ethical standards are rigorously enforced to prevent misconduct and when breaches of these standards are discovered, disciplinary action, including termination, is taken against those involved."

May 12, 2008

"Countrywide does not generally comment on pending litigation. During Mr. Zachary’s employment with Countrywide, the company investigated each of his claims and found no merit to his accusations. REALLY I DOUBT THAT Countrywide has policies and procedures in place that aim to prevent the type of activities Mr. Zachary is alleging. Countrywide stands behind its systems and processes and will defend this case vigorously."

"Countrywide denies any allegations that Mr. Zachary’s termination was related to any concerns he raised. In fact, Countrywide has a firm policy against any such action. Here is the policy, as discussed in the company’s Employee Handbook."

"IT IS A VIOLATION OF COMPANY POLICY TO INTIMIDATE OR IMPOSE ANY OTHER FORM OF RETALIATION ON AN EMPLOYEE WHO REPORTS ANY ACTUAL OR SUSPECTED ILLEGAL OR UNETHICAL CONDUCT."

May 15, 2008

"Mr. Zachary was terminated for poor performance and was not the subject of any retaliation."

"Mr. Zachary received verbal counseling on his performance, as well as written feedback in the form of his evaluation, before he first made allegations of impropriety."
"Mr. Zachary is motivated by self-interest, not the welfare of borrowers, as evidenced by his unsolicited offer to Countrywide to keep silent on these claims in return for a payment of nearly $1 million. Countrywide refused."

"Mr. Zachary was terminated for poor performance and was not the subject of any retaliation."

"Mr. Zachary received verbal counseling on his performance, as well as written feedback in the form of his evaluation, before he first made allegations of impropriety."

"Mr. Zachary is motivated by self-interest, not the welfare of borrowers, as evidenced by his unsolicited offer to Countrywide to keep silent on these claims in return for a payment of nearly $1 million. Countrywide refused."
By Lisa Myers, NBC News Senior Investigative Correspondent
Amna Nawaz, NBC Producer
updated 1:05 p.m. MT, Tues., July. 1, 2008

HOUSTON - Amid multiple federal investigations into potential wrongdoing at Countrywide, a former regional manager now says he tried to sound the alarm about improper conduct, and was ignored.

Mark Zachary, who'd been in the mortgage business for 12 years when he took a job at Countrywide in August 2006 as a regional vice president in Houston, says he found a corporate culture of shady, possibly illegal practices.

"You see some of the things that were going on and you just know that it's not right, " he said in an exclusive interview with NBC News. "It was, what do we do to get one more deal done. It doesn't matter how you get there, just how do you get one more deal done."

In a series of internal documents over the next nine months, Zachary says he repeatedly warned superiors about questionable practices:

-Inflating home appraisals—so buyers could borrow enough to cover closing costs...but end up owing more than the house was worth.
-Flipping loans—moving an unqualified buyer from a conventional loan to one that doesnt require documentation, knowing they couldn't afford it.
-Coaching borrowers—to overstate, even double, their income to qualify.

In fact, Zachary says certain loans were known as "liar loans." Why?

"Because the income stated on those loans generally is not a true representation of what that person normally makes," he said.

In February 2007, after six months on the job, Zachary warned superiors about the potential effects of bad lending practices, writing:

"In a market where there are more foreclosures and defaults than we care to talk about, I think part of that is because some builders and lenders are setting people up for further failure in life by putting them in loans and houses they do not belong in."

Were these practices the work of a couple of bad apples?

"No, not at all," says Zachary. "It comes down, I think from the very top that you get a loan done at any cost."

Zachary said these practices ultimately misled investors—about the safety and value of these loans, and hurt borrowers—who were put in loans they couldn't afford to repay.

Countrywide denies Zachary's allegations, saying it "investigated each of his claims and found no merit to his accusations."
Story continues below ↓advertisement

However, NBC News spoke to six other former Countrywide employees in different parts of the country who described the same culture and many of the same practices. Some even said that W-2's and other documents—including paystubs, lease agreements, and letters of verification—were falsified to clear loans.

A former loan officer—who runs a website criticizing Countrywide—said the more loans they made, the more they were paid...which created a culture of anything goes.

"I've seen supervisors stand over employees' shoulders and watch them, you know, change incomes and things like that to make the loan work," he said.

Customers say they saw it too. Lisa Blue says her countrywide loan officer told her to claim she made more than twice her actual income.

"I said I highly doubt an accounting manager makes a hundred thousand dollars anywhere," Blue said. "She was telling me to state stuff that was totally lies."

Zachary says after he took his concerns to senior management, and refused to approve unqualified borrowers to make his numbers, he was fired after 10 months on the job.

Countrywide disputes that. A spokeswoman says that Zachary was "terminated for poor performance," and that he "received verbal counselling on his performance, as well as written feedback in the form of his evaluation, before he first made allegations of impropriety."

But documents show Zachary began raising questions to Countrywide superiors about specific lending practices as early as September 2006, soon after joining the company.

In February 2007, Zachary received a good employee performance evaluation—indicating he was surpassing some expectations and not meeting others—but with no indications he was in any jeopardy of losing his job. Four months later, he was fired.

Zachary's lawyer, Philip Hilder, says his investigation shows the practices his client alleges were not necessarily confined to the Texas region, but may have been systemic. He dismisses Countrywide's claim that they have investigated Zachary's allegations.

"I don't think they properly investigated," says Hilder. "And I don't think they're gonna like the results when they do." So why is Zachary speaking out now?

"People are out in the streets because of lending practices that should'a never been practiced," says Zachary. "I don't know what I can say to make that situation better, but what I can do is still go to work every day, and make sure, or try to make sure that it doesn't continue to happen."

Zachary is now suing Countrywide for wrongful termination.

Countrywide says Zachary is "motivated by self-interest." A spokeswoman claims Zachary offered not to go public with his allegations if the company paid him $1 million. Zachary's lawyer says that charge is "false and deceitful."

The Countrywide spokeswoman also says the company's "lending operations are prudently and effectively managed," and that "Countrywide's ethical standards are rigorously enforced."

There is so much more, yet the homeowner and real estate investor will be the ones to really pay. Borrowers at times pay for the lender to do an appraisal review, and borrowers think that lenders are looking out for them, however the lender in perhaps even more so eager for the borrower to receive that loan and home than the actual borrower. The lender takes no accountability, and the government is putting people in jail, based on ignorance and their need to be employed.

What is the real crime here? Whose looking out for the citizens? Whose looking out for those American Dreamers that decide to become Real Estate Investors?
Posted by Peace&Courage at 4:19 PM 0 comments
Labels: fraud, investors, lenders, loans, mortgage, prison, stated
What Would Be Your Plan to Correct The USA Economy?
Why does not the USA choose 10,000,000 people that operate businesses in other countries to become USA citizens and charge them 50% tax for 10 years (that would bring in an extra $100 billion a year) with no use of government assistance programs, in order to take care of our citizens? Why are illegal aliens able to use Medicaid, Medicare, or Welfare (this would save us $100 billion a year, so now we are up $200 billion)? These new 10,000,000 citizens in holding would be required to buy a home over the next year divided by 3.3 (the average size family coming in) so roughly 3 mil homes would be bought up, that would go a long way, and at least that market could begin to stabilize. The federal government could place a moratorium on builders. Take charge of lending & getting rid of lenders and investors all together, and allow citizens to borrow at the same rates banks borrow at, "such as under 3% interest only per year"and really act in the peoples best interest. WOW! Would not it be great if our gov would really be the peoples government? Drill our own oil, as we seek other energy sources, such as nuclear and other clean energy.
Posted by Peace&Courage at 4:16 PM 0 comments
Friday, August 22, 2008
Remember All Those Great No Doc & State To Qualify Portfolio Programs?
Well your lender doesn't remember those programs, and in fact they act like they never existed!

What does this mean to you? Well it could mean prison time, and being kept away from your family!

Have you ever heard that it “doesn't matter what income you make”, or have underwriters and AE's told you that "this is their money, and their rules", or how it was just a matter of their letting them “handle the situation” Have they ever said “just put this here” or “just show up” or "it's a no doc"? Then assurance you not to “worry this is just our program and this is simply how it works”. Believe it or not at times the “NO Docs” actually became “stated” and you never knew it. You never looked at the paperwork because your “licensed professional” loan person who is supposed to know all the rules and laws and follow them took care of it for you.

Of course then there is their explanation of occupancy. I've even heard that it “doesn't matter” either. However that doesn't quite seem right. So you ask someone to explain it too you and it's all over the board.

So, if this has happened to you as a buyer, borrower, broker, loan officer, underwriter, processor, AE, then I need to hear from you. It is our only protection as the witch hunt continues.

I have been told on multiple occasions and by multiple companies, including processors, loan officers, AE's, underwriters, supervisors & and brokers that to certain companies, and under certain loan programs, that it “doesn't matter” on a whole lot of matters. That each lender has its own multitude of programs and specials, and that they are changing all the time. So you call and see how they have changed and you call other companies day after day, seeking for those “niche programs” that are magical and that you fit the criteria for. This was not always a simple task.

In fact today I had an argument with an appraiser that was mis-quoting Fannie Mae guidelines. He was saying all the things I've heard before. For example all you need to do is “spend a night there” or “store personal belongings” or “don't rent out to unrelated persons” that it is “owner occupied”. However that may or may not be true. Primary residence according to what I have since learned is not the same as owner occupied and the two cannot be confused. Even though on many occasions I have heard the same definitions used to define both. You can look up Freddie Macs guidelines on line, and with $5 trillion in debt that Freddie Mac has, I would bank that your lender is going to sell to them, and that your lender really does not have that “niche program” that you have been hearing about.

Beware! All those No Doc & No Doc / Stated Hybrids are trouble!

Few people look at their loan package because it is so cumbersome and has been prepared for them by an “expert”.

You trust that every thing's OK, you told everyone the truth, and even so, if you look at your loan package, it may not resemble anything that you said.

You have no proof of what was done, or what you said, or what was said to you, all there is that binds you is your signature.

I wish I had taped every call. I just happened to tape one call that will prove my innocence.

Where are all those “state to qualify” programs that your friendly lender had? Most likely sitting with Freddie Mac or Fannie Mae, or sold to other banks that have no idea of that “Special Niche Program” your original lender had.

I am just beginning to compile a list of processors, borrowers, loan officers, brokers, lenders, AE's, Supervisors, that will come clean and tell it as it really was, and I need you as well.

I need copies of your old program sheets, any taped phone calls, emails any correspondence you have had regarding these loan programs . I am looking for 100 people to come to congress and tell it as it was.

Now the economy fell apart. Our nations top 100 builders were gluttons, liars and plain greedy. They over built, lied about their products, and markets. At the same time newspapers, TV, Radio, Internet, and so many of us did speculate in real estate due to all the lures over federally broadcast radio and television. It's the American Way, to Dream Big. Most were just believing that things were the way they were presented to us, from the great loan programs, to the great markets.

So what to do? Unite together and get this proof over to Congress.

Let us start right now and stop this craziness! Let’s hold the Lender accountable!

As the market has turned, many, including myself are losing property. I can't sell because so many empty homes are out there, and people are waiting for the market to go lower. I know I can't hold on and neither can most people it seems.

Dammed if you do try to better your living situation and finances, and dammed if you don't. Why was the public feed all this misinformation about the market anyway? Because it suited the specific agendas of the top 100 builders, mortgage companies, lenders, stock trades, and other speculators.

Builders such as DR Horton built nearly 250,000 homes and received $85 billion over the past 6 years. Lennar built nearly 220,000 homes and received nearly $75 billion. Pulte built nearly 230,000 homes and received almost $75 billion. That’s just a small sample. Just keep going down the builder top 100 list and see what was made and that’s not even to mention all the smaller builders. We have enough homes here in the USA to last past 2014; if not one more home was built.

It seems that those regular people who dare to plan, desire to succeed, and believe the experts, thinking that they are looking ahead, in their desire to follow the American Dream are now getting ridiculed in the media, as well as targeted by the legal system.

The giants, "Our Nations Top Builders" made their money, and left everyone in chaos. Many of the CEO's were paid huge bonuses over the past 5 years of hundreds of millions. No one is going after them, even though their mortgage companies committed fraud, and manipulated the market. The experts now state, that the “real estate investors should have known". Known what? Known that our economy was false, that the housing market was inflated, that builders overbuilt? Investors should have known that builders would continue to overbuild and saturate the market, so that the housing market would plummet, and we'd lose all of our equity? How should we have known that the dollar would plummet against foreign currencies? Well we all know now even though as recent as 2007 the media was saying that Utah's housing market was increasing 17% to 32% per year. That is what experts said in 2007.

So now the federal government bails out certain privileged builders, lenders, and some smart homeowners. Exactly how is this once more the real estate investors fault? Simply put the USA has too many homes, the supply is too great.

I am not a loan officer, just someone that wanted to solve problems and desired to make a buck in real estate. I wanted to know what could and could not be done, and to make sure I was within the guidelines. I wanted to do things right and hired experts. I wanted to see first hand how things worked. I believed that all these lenders where indeed presenting their rules as they really were. I believed all the lender rate sheets and flyer's and the magical “no doc” and “stated” loans. I believed lenders when they said that this was “their money and their rules”. I believed in the American Dream.

Sadly, I recommended people to these loan programs. I thought these programs were a blessing, an honest avenue that solved a lot of problems and made purchasing property easy and possible for anyone with a pulse. In fact I was told that “anyone with a pulse” qualified for these loans. I was told this time and time again by the lenders, processors and loan officers, AE's, even underwriters.

Your friendly loan officer writes loans that fit their lender’s and or investor’s guidelines. Most loan officers are honest, they do what they are told is permitted. On average your broker has hundreds of programs and dozens of Lenders/Investors. Most of these guidelines are verbally presented and other guidelines conditionally written upon a checklist that the Lender gives to the broker/loan officer. I have heard some of those loan officers have been lied too by the Lenders Account Representatives, and underwriters, that explain to the loan officers how the programs work and what is required. The lies additionally involve the Investors, Underwriters, and at times supervisors. I have been lied to many times and by many lenders. Many of the loan officers have been lied to by the actual lender and or investor in my presence. I have asked for what they have said in writing at times and asked for the actual guidelines and most of those lenders do not have them. Why? Why is most everything verbal? It should be a law that all guidelines accompany the loan application.

I have emails from Lenders and Investors stating that they do not have any written guidelines. How convenient. The Lender tells the loan officer and the loan officer may or may not tell the borrower, so then no one actually possesses a copy of the guidelines. Who would think that the lender is lying? Lenders state that these special “no doc” and “stated” programs are their own “niche stated programs”. Fortunately I happened to have saved one copy of the guidelines of a very popular lender, and from one of those banks/lenders/investors. Their stated program is incriminating and shows the lenders deceit in trapping unsuspected brokers, loan officers, and borrowers. The lender in no way relied on the income, job, assets, or down payments to issue these loans.

However can a borrower commit fraud when that borrower is told and believes that this is the “lenders money and rules”? Is it fraud when the borrower acts in accordance with what that borrower believes to be true, as is told to them by the lending company, and the borrower does as instructed by the company that is loaning the money?

Lenders claim that the borrower is borrowing the lenders own money and the lender sets the rules. When in fact this is usually NOT the case. They say this to make the borrower, loan office and broker think that the lender is something special and give the borrower a reason to use their company. The claims programs offering special criteria regarding occupancy, second homes, rental property, stated income and assets programs, No doc, gifted down payment programs, credited commissions and credited sellers contributions and concessions. We are all told that it is the Lenders money and the Lenders rules and therefore just do what the lender says and everything will be perfect.

The lender did not rely on the borrower’s mis-information. The lender created that mis-information and presented to the borrower that this is how this program and this lender works. The dirty hands and the fraud belong to the lender, the inventor and petitioner of these loan programs. To complicate matters more and to show criminal intent, the lenders then sell these falsified loans to unsuspecting third parties that have no clue of these “special niche products” and what the Lender told the borrower. This leaves the lenders own workers, and then the broker, the loan officers and processors and the borrower to suffer grief and to be at risk of being involved in civil legal actions, and maybe even charged with crimes. It is unthinkable, it is criminal. It is time that the truth is exposed. While some companies may not have been acting in this manner large portions have, and this has been the norm for 12 years.

The government needs to take over residential lending. They need to place ads explaining what is and what is not legal. Since all of these loans end up with our government taking the hit in the end, it would be wise to start this now.

So, instead of arresting people for doing what they thought to be legal let’s try educating people. Form a task force that actually tells people that it does not matter if the lender lied, only that they signed, and that innocent, contributing citizens, parents, mothers, fathers, sisters, brothers, people are being harmed and this needs to stop.

Where is the representation for the borrower, our citizens? How is the government protecting them? There is no protection. The government simply says, "YOU ARE GUILTY"

Something has to change.

Yes there are crooked Loan officers too, as well as crooked processors, and the borrower should not pay for their mistakes either.

However there are a large portion of lying mortgage companies, lenders, banks, and investors with fraudulent programs aimed at defrauding the borrower and buyer of the note.

Now that these lenders see their loans are defaulting, they blame the borrower, the one that has little chance to defend themselves. The ones that lived the American Dream, the ones that relied on the strength of our economy, listening over federally broadcasting media, listened to the experts.

There was one time when I called the lender after some loans had closed, and luckily I emailed them as well. I was sent an article concerning “stated loans” and people going to prison. I was in shock, bewildered and frankly scared. I called up the processor and several loan officers and showed them this article, all thought that something more must have happened. I wrote a letter to the lender and questioned their “stated loan” programs and the danger and potential problems. I asked them to call me back. I was called back by the underwriter of this lender, even though the letter went to her supervisor. The underwriter called me back instead and told me that these stated loans and exaggerated incomes and assets were their loan programs. They were “stated to qualify” and had nothing to do with reality. (These were to be “No Doc” loans and were changed along the way). I had been told this by this company for a many months before this particular transaction that these were “liar’s loans” and that numbers were simply “made up” in order to fit their criteria. That owner occupied was, throwing some bags or boxes in the garage, however you could not rent to strangers. The underwriter went on to say that nothing is wrong with the loans. This underwriter has previously cleared everything with her supervisor, "the ability to pay back the loan was not a consideration", that is a word for word quote from the underwriter and her supervisor. At the very end of this conversation the underwriter would contradict herself to say as long as the loans did not default, there was no problem. I then called the president of this loan company and their fraud unit and asked them to call me back. Others called them as well with the same concerns. We found that in spite of their claims of these loans being their own special “niche programs” and they would not be sold, that they had sold the loans to Freddie Mac and other unsuspecting banks after knowing the loans had problems... much more. Luckily for some reason, that call from the underwriter happen to be caught on tape, I was blessed to have my tape recorder on when that underwriter called me. I do not know where I would be if I did not have that tape.

As a post note: I am not a loan officer, just someone that wanted to solve problems and desired to make a buck in real estate. I wanted to know what could and could not be done, and to make sure I was within the guidelines. I wanted to do things rights and hired experts. I wanted to see first hand how things worked. I believed that all these lenders where indeed presenting their rules as they really were. I believed all the lender rate sheets and flyer's and the magical no doc and stated loans. I believed lenders when they said that this was their money and their rules. I believed in the American Dream.

Sadly, I recommended people to these loan programs. I thought these programs were a blessing, an honest avenue that solved a lot of problems and made purchasing property easy and possible for anyone with a pulse. In fact I was told that anyone with a pulse qualified for these loans. I was told this time and time again by the lenders, processors and loan officers, AE's, even underwriters.

Your friendly loan officer writes loans that fit their lenders and or investors guidelines, most loan officers are honest, they do what they are told is permitted. On average your broker has hundreds of programs and dozens of Lenders/Investors and most all these guidelines are verbally presented and others guidelines conditionally written upon a checklist that the Lender gives to the broker/loan officer. I have heard some of those loan officers been lied too by the Lenders Account Representatives, and underwriters, that explain to the loan officers how the programs work and what is required. The lies additionally involve the Investors Underwriters, and at times supervisors. I have been lied to many times and by many lenders. Many of the loan officers have been lied to by the actual lender and or investor in my presence. I have asked for in writing at times the actual guidelines and most of those lenders do not not have them. Why? Why is most everything verbal?It should be a law that all guidelines accompany the loan application.

I have emails from Lenders and Investors stating that they do not have any written guidelines, How convenient. The Lender tells the loan officer and the loan officer may or may not tell the borrower, so then no one actually possesses a copy of the guidelines. Who would think that the lender is lying? Lenders state that these special no doc and stated programs are their own niche stated programs. I happened to have saved one copy of the guidelines of a very popular lender, and from one of those banks/lenders/investors their stated program is incriminating and shows the lenders deceit in trapping unsuspected brokers, loan officers, and borrowers. The lender in no way relied on the income, job, assets, or down payments to issue these loans.

However can can a borrower commit fraud when that borrower is told and believes that this is the lenders money and rules, and acts in accordance with what that borrower believes to be true, as portrayed by the lending company, and does as instructed by the company that is loaning the money?

From the lenders explanation of owner occupancy, second homes and rental property to their stated income and assets programs, to gifted and paid for by commission down payments, or credited commissions or sellers contributions, all are told that it is the Lenders money and the Lenders rules and therefore there is no fraud on the borrowers behalf under this circumstance.

The lender did not rely on the borrowers mis-information. The lender created that mis-information and presented to the borrower that this is how this program and the lender worked. The dirty hands belong to the inventor and petitioner of these loan programs, yes the lender themselves. To complicate matters worse and to show criminal intent, the lenders sell these falsified loans to unsuspecting third party's that have no clue of these special niche products, and the lenders representations, in addition the lender entraps their own workers, and then the broker, the loan officers and processors and the borrower to suffer grief and to be at risk of being involved in civil legal actions, and charged with crimes. It is unthinkable, it is criminal. It is time that the truth be exposed. While some companies may not have been acting in this manner, a large portion have, and this has been the norm for 12 years.

The government needs to take over residential lending, they need to place ads explaining what is not legal. And due to the fact that all these loans end up with our government taking the hit in the end, it would be wise to start this ads now.

So instead of arresting people for doing what they thought to be legal. Educating people and finding the truth would be appropriate. The task force actually tells people that it does not matter if the lender lied, only that they signed, and so innocent, contributing citizens, parents, mothers, fathers, sisters, brothers, "people are being harmed and this needs to stop.

Where is the representation for the borrower, our citizens? How is the government protecting them? There is no protection. Task force simply say "YOU ARE GUILTY"

Something has to change.

Yes there are crooked Loan officers too, as well as crooked processors, and the borrower should not pay for their mistakes either.

However there are a large portion of lying mortgage companies, lenders, banks, and investors with fraudulent programs aimed at defrauding the borrower and buyer of the note.

Now that these lenders see their loans are defaulting, they blame the borrower, the one that has little chance to defend themselves. The ones that lived the American Dream, the ones that relied on the strength of our economy, listening over federally broadcasting media, to the experts.

At one time I called the lender after some loans had closed, and luckily I emailed them as well. I was sent an article concerning stated loans and people going to prison. I was in shock, bewildered and frankly scared. I called up the processor and several loan officers and showed them this article, all thought that something more must have happened. I wrote a letter to the lender and questioned their stated loan programs and the danger and potential problems. I asked them to call me back. I was called back by the underwriter of this lender, even though the letter went to her supervisor. The underwriter called me back instead and told me that these stated loans and exaggerated incomes and assets were their loan programs, they were stated to qualify and had nothing to do with reality. (these were to be No Doc loans and were changed along the way) I had been told this by this company for a long time that the processor was to just backed in numbers, that owner occupied was, throwing some bags or boxes in the garage, however you could not rent to strangers. The underwriter went on to say that nothing is wrong with the loans. This underwriter has previously cleared everything with her supervisor, "the ability to pay back the loan was not a consideration", that is a word for word quote. At the very end of this conversation the underwriter would contradict herself to say as long as the loans did not default, there was no problem. I called the president of this lender and their fraud unit. Others called them as well, we found out that they had sold the loans to Freddie Mac and other unsuspecting banks anyway and after knowing the loans had problems... much more. Luckily for some reason, that call from the underwriter happen to be caught on tape, I was blessed to have my tape recorder on when that underwriter called me. I do not know where I would be if I did not have that tape.

Surly God was watching over me, and provided away to prove what had transpired. Won't they and congresses be enlightened when they hear that tape in court.

Countrywide whistle blower reports 'liar loans'This is no surprize I have seen this and more happen.

Former regional manager sues mortgage company for wrongful termination

Countrywide's 'shady' corporate culture
June 30: A regional manager from inside the nation's largest mortgage lender speaks out about possible wrongdoings by the company which cost families their homes. NBC's Lisa Myers reports.

Former Countrywide manager speaks out
June 30: Former Countrywide Regional Vice President Mark Zachary says he was fired for raising questions about the mortgage giant's lending practices. An exclusive interview with NBC's Lisa Myers.

Countrywide's response to NBC

The following represents the entirety of Countrywide's responses to NBC's investigation:

May 12, 2008

"Contrary to allegations by former employees, Countrywide’s lending operations are prudently and effectively managed, as evidenced by delinquency and foreclosure rates that compare favorably to industry averages. These alleged incidents do not reflect the conduct of tens of thousands of dedicated employees who have helped millions of families purchase and stay in their homes. Countrywide’s ethical standards are rigorously enforced to prevent misconduct and when breaches of these standards are discovered, disciplinary action, including termination, is taken against those involved."

May 12, 2008

"Countrywide does not generally comment on pending litigation. During Mr. Zachary’s employment with Countrywide, the company investigated each of his claims and found no merit to his accusations. REALLY I DOUBT THAT Countrywide has policies and procedures in place that aim to prevent the type of activities Mr. Zachary is alleging. Countrywide stands behind its systems and processes and will defend this case vigorously."

"Countrywide denies any allegations that Mr. Zachary’s termination was related to any concerns he raised. In fact, Countrywide has a firm policy against any such action. Here is the policy, as discussed in the company’s Employee Handbook."

"IT IS A VIOLATION OF COMPANY POLICY TO INTIMIDATE OR IMPOSE ANY OTHER FORM OF RETALIATION ON AN EMPLOYEE WHO REPORTS ANY ACTUAL OR SUSPECTED ILLEGAL OR UNETHICAL CONDUCT."

May 15, 2008

"Mr. Zachary was terminated for poor performance and was not the subject of any retaliation."

"Mr. Zachary received verbal counseling on his performance, as well as written feedback in the form of his evaluation, before he first made allegations of impropriety."
"Mr. Zachary is motivated by self-interest, not the welfare of borrowers, as evidenced by his unsolicited offer to Countrywide to keep silent on these claims in return for a payment of nearly $1 million. Countrywide refused."

"Mr. Zachary was terminated for poor performance and was not the subject of any retaliation."

"Mr. Zachary received verbal counseling on his performance, as well as written feedback in the form of his evaluation, before he first made allegations of impropriety."

"Mr. Zachary is motivated by self-interest, not the welfare of borrowers, as evidenced by his unsolicited offer to Countrywide to keep silent on these claims in return for a payment of nearly $1 million. Countrywide refused."
By Lisa Myers, NBC News Senior Investigative Correspondent
Amna Nawaz, NBC Producer
updated 1:05 p.m. MT, Tues., July. 1, 2008

HOUSTON - Amid multiple federal investigations into potential wrongdoing at Countrywide, a former regional manager now says he tried to sound the alarm about improper conduct, and was ignored.

Mark Zachary, who'd been in the mortgage business for 12 years when he took a job at Countrywide in August 2006 as a regional vice president in Houston, says he found a corporate culture of shady, possibly illegal practices.

"You see some of the things that were going on and you just know that it's not right, " he said in an exclusive interview with NBC News. "It was, what do we do to get one more deal done. It doesn't matter how you get there, just how do you get one more deal done."

In a series of internal documents over the next nine months, Zachary says he repeatedly warned superiors about questionable practices:

-Inflating home appraisals—so buyers could borrow enough to cover closing costs...but end up owing more than the house was worth.
-Flipping loans—moving an unqualified buyer from a conventional loan to one that doesnt require documentation, knowing they couldn't afford it.
-Coaching borrowers—to overstate, even double, their income to qualify.

In fact, Zachary says certain loans were known as "liar loans." Why?

"Because the income stated on those loans generally is not a true representation of what that person normally makes," he said.

In February 2007, after six months on the job, Zachary warned superiors about the potential effects of bad lending practices, writing:

"In a market where there are more foreclosures and defaults than we care to talk about, I think part of that is because some builders and lenders are setting people up for further failure in life by putting them in loans and houses they do not belong in."

Were these practices the work of a couple of bad apples?

"No, not at all," says Zachary. "It comes down, I think from the very top that you get a loan done at any cost."

Zachary said these practices ultimately misled investors—about the safety and value of these loans, and hurt borrowers—who were put in loans they couldn't afford to repay.

Countrywide denies Zachary's allegations, saying it "investigated each of his claims and found no merit to his accusations."
Story continues below ↓advertisement

However, NBC News spoke to six other former Countrywide employees in different parts of the country who described the same culture and many of the same practices. Some even said that W-2's and other documents—including paystubs, lease agreements, and letters of verification—were falsified to clear loans.

A former loan officer—who runs a website criticizing Countrywide—said the more loans they made, the more they were paid...which created a culture of anything goes.

"I've seen supervisors stand over employees' shoulders and watch them, you know, change incomes and things like that to make the loan work," he said.

Customers say they saw it too. Lisa Blue says her countrywide loan officer told her to claim she made more than twice her actual income.

"I said I highly doubt an accounting manager makes a hundred thousand dollars anywhere," Blue said. "She was telling me to state stuff that was totally lies."

Zachary says after he took his concerns to senior management, and refused to approve unqualified borrowers to make his numbers, he was fired after 10 months on the job.

Countrywide disputes that. A spokeswoman says that Zachary was "terminated for poor performance," and that he "received verbal counselling on his performance, as well as written feedback in the form of his evaluation, before he first made allegations of impropriety."

But documents show Zachary began raising questions to Countrywide superiors about specific lending practices as early as September 2006, soon after joining the company.

In February 2007, Zachary received a good employee performance evaluation—indicating he was surpassing some expectations and not meeting others—but with no indications he was in any jeopardy of losing his job. Four months later, he was fired.

Zachary's lawyer, Philip Hilder, says his investigation shows the practices his client alleges were not necessarily confined to the Texas region, but may have been systemic. He dismisses Countrywide's claim that they have investigated Zachary's allegations.

"I don't think they properly investigated," says Hilder. "And I don't think they're gonna like the results when they do." So why is Zachary speaking out now?

"People are out in the streets because of lending practices that should'a never been practiced," says Zachary. "I don't know what I can say to make that situation better, but what I can do is still go to work every day, and make sure, or try to make sure that it doesn't continue to happen."

Zachary is now suing Countrywide for wrongful termination.

Countrywide says Zachary is "motivated by self-interest." A spokeswoman claims Zachary offered not to go public with his allegations if the company paid him $1 million. Zachary's lawyer says that charge is "false and deceitful."

The Countrywide spokeswoman also says the company's "lending operations are prudently and effectively managed," and that "Countrywide's ethical standards are rigorously enforced."

There is so much more, yet the homeowner and real estate investor will be the ones to really pay. Borrowers at times pay for the lender to do an appraisal review, and borrowers think that lenders are looking out for them, however the lender in perhaps even more so eager for the borrower to receive that loan and home than the actual borrower. The lender takes no accountability, and the government is putting people in jail, based on ignorance and their need to be employed.

What is the real crime here? Whose looking out for the citizens? Whose looking out for those American Dreamers that decide to become Real Estate Investors?

Real Estate Investors are getting a bad rap, they were lied to by the lenders. They bought property to make a profit. They read the real estate books, they combined together to win, and that does not make this a scam, or wrong. Some got large commissions, some took out money at closing, some had co-partners where they agreed to use other peoples credit and it was all legal. Had the market been good, the outcome would have been sweet. The banks still the same used deceit, in providing programs and loan criteria that was falsified to the borrower, to loan officers & brokers.