Countrywide Mortgage Fraud

Today, it appears, the FBI is launching an investigation into the "Company Practices" of Countrywide Home Loans.

I actually worked for Countrywide. It was great for me when I was working there because we were the top dogs at the time. We could undercut any Mortgage Broker on rate and closing cost. Their subprime division, Full Spectrum would charge a four or five points on each loan for those who had credit issues and they would approve almost anyone. "580 credit score and no money down! Absolutely! No problem...sign right here!"

Another bizarre thing is that Countrywide has in-house underwriting and the Branch Manager was basically given complete control. The Branch Manager was also a working Loan Officer. This meant they submitted deals to the Underwriter. It put the underwriter in a precarious position because they were working for the Branch Manager. Many times the underwriters felt very pressured to approve deals. We were able to get deals closed in record time. We got deals approved that no other mortgage broker could do. It looks like, in hindsight, that was not the best business model.

Thanks,
Matt Sullivan, CEO of Credit Dusters
The BLog: http://creditdusters.wordpress.com


NyTimes: Countrywide under Criminal Investigation