02-16-2009, 07:44 PM
They had a guy that was a big wheel loan officer at World Savings Bank. They pretty much just did tons of residential loans over the years.
About 3 years ago that guy went to his boss and said what they were doing was illegal. Giving loans to people that couldn't afford them. They told him to stfu.
Anyway, the report dove into some of those loans.
They interviewed on old colored lady. She was living on a pension. The loan officer told her that she could qualify for more house than she thought. She asked how. He said that they could fill out the application with her pension income and also use her husbands income from his job.
The 60 minutes guy then asked her, "but wasn't your husband retired at the time? You mean they used income that he USED to make?"
She said, "um no. my husband be dead".
So they gave her a loan based on her dead husbands income from years ago. They said the loan amount due each month is more than her entire pension check for the month.j
He said this was normal. They would approve hundreds and hundreds of loans every day using false information just to get it past the underwriters.
About 3 years ago that guy went to his boss and said what they were doing was illegal. Giving loans to people that couldn't afford them. They told him to stfu.
Anyway, the report dove into some of those loans.
They interviewed on old colored lady. She was living on a pension. The loan officer told her that she could qualify for more house than she thought. She asked how. He said that they could fill out the application with her pension income and also use her husbands income from his job.
The 60 minutes guy then asked her, "but wasn't your husband retired at the time? You mean they used income that he USED to make?"
She said, "um no. my husband be dead".
So they gave her a loan based on her dead husbands income from years ago. They said the loan amount due each month is more than her entire pension check for the month.j
He said this was normal. They would approve hundreds and hundreds of loans every day using false information just to get it past the underwriters.

