Having been in the mortgage banking industry for years we used to wonder, “how in the world can (insert other company name here) close this loan?” We would with great regularity deny a loan only to have the agent or borrower let us know later they closed at this broker or that broker or some other lender. From looking at the files we knew there was no way they were good loans.
What’s that old saying, what goes around comes around? Farkas is not the only actor he’s just one who has been caught and prosecuted. You can ask almost any loan officer in any city who they think was “crooked” back during the boom and if they all say the same names you may want to start sniffing.
I’m still totally blown away there hasn’t been similar news about a certain country wide lender which was huge during the boom.
Well, Virginia, now we know how they were closing all those loans we would not approve. In reality they were not doable loans which we passed on. Amazingly, at the time, we were the bad guys for turning them down.
After the verdict: What’s next in the Farkas case
ALEXANDRIA, Va. — It took only a day for a jury to return guilty verdicts against Lee Farkas. Now the former Taylor, Bean & Whitaker Mortgage Corp. chairman must wait considerably longer to find out his sentence.
Farkas, 58, will find out July 1. He faces a possible life term behind bars if given the maximum penalty for what prosecutors said was a $2.9 billion fraud scheme that toppled major financial institutions.