A former regional manager for Countrywide Home Loans, the mega mortgage company whose shady mortgage mill came to epitomize the subprime meltdown, went on The Today Show camera to detail some of the company’s questionable practices. Here’s some of the tricks he warned upper management about during his 6-month stint before he was fired for refusing to give loans to unqualified buyers:
Inflating Home Appraisals: Buyers could borrow enough to cover closing costs, but ended up owing more than the house is worth.
Flipping Loans: Moving unqualified buyers to loans that don’t require documentation, knowing they couldn’t afford it
Coaching: Brokers told buyers to overstate or even double their stated income in order to qualify for loans.
Watch the clip, inside…
Today Show: “So, Countrywide employees were coaching them to lie?”
[via Today Show]