Remember Penny Mac is also know as Countrywide, the same creeps and thieves, who took homes and bet against them and defrauded the country is at it still, except now their a private hedge fund, which makes them even more dangerous. Why would the SEC and the FDIC, and the US Government allow these thieves to keep going? Anybody got answers? If you ask the government, all you will get is a run around.. same with the SEC.
HUSTLE: A PLAN TO DESTROY HOMEOWNERS AND DEFRAUD INVESTORS:
The U.S. Government in its complaint filed against Bank of America
details the specific ways in which Countrywide was operating when loans
were originated.
"Countrywide rolled out a new streamlined loan origination model is called the "hustle."
In
order to increase the speed at which it originated and sold loans to
the GSES, countrywide eliminated every significant checkpoint on loan
quality and compensated its employees solely based on the volume of
loans originated, leading to rampant instances of fraud and other
serious lung defects all while countrywide was informing the GSES that
it had tightened its underwriting guidelines."
Countrywide
eliminated underwriter review even from many high risk loans. In lieu
of underwriter review, countrywide assigned critical underwriting tasks
to loan processors who were previously considered unqualified even to
answer borrower questions. At the same time, countrywide or eliminated
previously mandatory checklists that provided instructions on how to
perform these underwriting tasks. Under the Hustle, such instructions on
proper underwriting were considered nothing more than unnecessary forms
that would slow the swim lane down.
Countrywide
also eliminated the position of compliance specialist, an individual
previously responsible for conducting a final, independent check on
alone to ensure that all conditions on the loans approval were satisfied
prior to funding.
The Hustle began in full force in approximately August 2007.
Countrywide
also concealed the quality control reports on Hustle loans
demonstrating that instances of fraud and other material defects (i.e.
defects making the loans in eligible for investors sell) were legion.
Countrywide's own quality control reports identified material defect
rate of nearly 40% in certain months, rates that were nearly 10 times
the industry-standard defect rate of approximately 4%.
The complaint above is from the United States Atty. for the Southern
District of New York gives us a clear picture of the processing of loans
without any underwriting standards at Countrywide and other aggregators
across the country. The complaint is not authority, but it is a guide
for what you can allege and what you can ask about in discovery.
It is time to ask the nuclear question, to wit: in light of the
revelations that are already in the public domain with dozens of
whistleblowers, is it not reasonable to assume that the aggregators not
only knew about fabricated, forged and inaccurate loan applications, but
actually intended that result. I ask that question because of the
number of attempted prosecutions of people for mortgage fraud, when
mortgage fraud was exactly what Countrywide wanted. They clearly wanted
the highest possible volume of loans approved under circumstances where
it can only be assumed that they wanted those loans to fail, in order
to be paid by insurers, counterparties on credit default swaps, the
federal government in bailouts and now the Federal Reserve which appears
to be buying $85 billion in worthless mortgage bonds from the
financial industry every month.
Thus Wall Street collected money from the investors (and took a share
of that and put it in their pocket), collected money from borrowers (and
took a share of that and put it in their pocket), collected money from
insurers which went only into their pockets, collected money from the
proceeds of credit default swaps which went only into their pockets,
collected money from the government in the bank bailouts, collected
money from the government sponsored entities who guarantee the loans,
and are collecting money from the Federal Reserve who are buying
worthless mortgage bonds which have little or no interest in any secured
loan, residential or otherwise. On top of all of that Wall Street has
taken the homes of more than 5 million families and is expected to take
the homes of another 5 million families --- supposedly to cover the
"loss" on mortgage bonds they never owned and mortgage loans they never
owned.
And then you have the real question, to wit: why would banks create a
scheme that originated loans, most of which were destined to fail in one
fashion or another? And the answer is unavoidable and incontestable:
they did it because that was the way they could make the most money.
And then the second real question, to wit: why would banks want
foreclosures but not want the property? And the related question is why
would they want a foreclosure under circumstances where a modification
would produce far greater proceeds to mitigate the loss on a loan that a
foreclosure? And the related question to that is why would the largest
bank in the world adopt a policy of fraud in order to guide people into
foreclosure deceiving them into thinking that they were getting a
modification? And the final question related to all of that is why with
the modification not become permanent after the borrower has done
everything correctly during the trial period? The answer is extremely
simple: the foreclosure process is the largest cover-up in history for
the largest economic crime in history; it provides cover for all of the
defects, multiple payments that were already received and never
disclosed, and the diversion of money and property from investors and
homeowners.
So why are these investors trusting them again is my question.. they don't like money??
