July 23, 2008
Subprimate Scum

Back in May I posted a sort of help-wanted ad for anybody who could put me in touch with a repentant former subprime mortgage broker. I wanted to post the actual selling scripts these subprimates worked from as they tricked the helpless and the clueless into lifelong debt servitude.

Nobody was able to help, but the Miami Herald had better luck than I did. There’s always an investigative team from a McClatchy paper around when you need one. Martha Bridegam of Demisemiblog sends this link to “Borrowers Betrayed,” the Herald’s probe of the pond scum, more than 10,000 of them with criminal records, who drove so many vulnerable Floridians into homelessness and bankruptcy.

The series focuses more on home loans than on subprime mortgages, though. And it doesn’t cover the actual sales pitches, selling scripts, and training manuals. So once again, please get in touch if you’ve got any leads. For contact info, click on the first link, above.

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Posted by Jerome Doolittle at July 23, 2008 07:12 PM
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McClatchy and Martha both rule!

Posted by: Chuck Dupree on July 23, 2008 10:37 PM

Nah, just McClatchy papers.

Posted by: Martha Bridegam on July 24, 2008 6:18 PM

P.S. My source for the above was the Barry Ritholtz "Big Picture" blog. Not the greatest politics but a fine economic observer. He has another inside-the-beast item today: a link to a memoir by the former chief appraiser of IndyMac:

http://bigpicture.typepad.com/comments/2008/07/appraisers-wows.html

Direct link to the memoir:
http://appraisersforum.com/showthread.php?t=141764

Sample shenanigan:
"...A residential subdivision had been appraised as “80% complete”, but when I visited it, it had only been rough-graded, probably no more than 15% complete. When I returned to the office on Monday I asked who the construction inspector was for that region. I was told that there were two inspectors for the Sacramento area; one was CEO Mike Perry’s father and the other one was Mike Perry’s father-in-law. The loan officer on the deal was Mike Perry’s younger brother, Roger, who had recently been hired. His previous experience had been as a cop...."

There's much more.

Posted by: Martha Bridegam on July 25, 2008 4:16 PM
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