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In Response To:
Thread Starter: John Burnett
Title: Re: you know its bad when...

Originally Posted By: Just Jay
I came into an email this morning from the SVP of Sales asking why we are concerning ourselves with doing QC audits on the loans we book and fund in our name and immediatley sell to the secondary market, you know since they have their own resources to do QC and they are buying the loans and all, why are we wasting our resourses. He would like to understand the need and relevance of doing so. crazy

Apparently someone doesn't like our recent findings smirk


That SVP's attitude, when institutionalized, is one of the several causes of the major mortgage market meltdown. When lenders were able make 'em, sell 'em, and forget 'em, they got the idea that they could get away with all sorts of loose practices and shift the risk of the buzzards coming home to roost to the secondary market. That is one of the main reasons that Dodd-Frank will be requiring securitizers of mortgage loans to retain part of the credit risk in those loans when they are sold.