Jim Eccleston: Jury Finds Mortgage Origination Abuse

Posted on November 5th, 2013 at 9:59 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:            

     In October 2013, a jury found Rebecca Mairone liable for having saddled the housing giants Fannie Mae and Freddie Mac with bad mortgages that resulted in over $1 billion in losses.  Essentially, the government alleged that the ramped-up mortgage initiative that Mairone oversaw pressured mortgage underwriters to originate riskier yet more profitable housing loans.  In particular, Countrywide’s mortgage program’s (“high speed swim lane”) processors were incentivized to, and repeatedly did, manipulate borrower information like borrower income and other information so that the loans would qualify for federal mortgage guarantees.  Further, according to court depositions, Mairone’s continued to push to meet revenue targets even as the housing market was dwindling, and despite concerns among some mortgage underwriters that the quality of the loans was deteriorating.  At this point, it is unclear what criminal penalties Mairone will face. 

The attorneys of Eccleston Law represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

If you find yourself in trouble with the regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

April 24, 2024
RIA Insurance Claims Skyrocket

A recent analysis by Golsan Scruggs reveals a staggering 231 percent increase in errors-and-omissions (E&O) liability claims among registered investment advisor (RIA)
insurers.

April 23, 2024
Surge Predicted in Regulation Best Interest Cases

According to a recent analysis, Reg BI-related actions quickly have ascended to the top five issues for FINRA, with fines totaling $6 million in 2023.

April 22, 2024
FINRA Fines Independent Broker-Dealers Over Cybersecurity Lapses

The Financial Industry Regulatory Authority (FINRA) has imposed fines and censured independent broker-dealers Osaic Wealth and Securities America for cybersecurity deficiencies that led to hackers accessing the private information of more than 32,000 customers.