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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