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Washington’s Blog: 80% of Citi’s Mortgages Defective Says Former Chief Underwriter

23 Oct

Well it certainly is interesting what gets a little bitty bit of coverage at Bloomberg and seems to be invisible everywhere else.  Looking forward to seeing the documents mentioned as coming later from WB.

Thursday, October 21, 2010

80% of Citi Mortgages Defective

Bloomberg notes:

Richard M. Bowen, former chief underwriter for Citigroup’s consumer-lending group, said he warned his superiors of concerns that some types of loans in securities didn’t conform with representations and warranties in 2006 and 2007.

“In mid-2006, I discovered that over 60 percent of these mortgages purchased and sold were defective,” Bowen testified on April 7 before the Financial Crisis Inquiry Commission created by Congress. “Defective mortgages increased during 2007 to over 80 percent of production.”

In addition, a reader sent me documents which he says prove that Citi was running foreclosure mills. I will post the documents after I have time to read and digest them.

 

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