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

Hiring Eccleston Law has been one of the best career decisions I have made and this "investment" to maintain my sterling regulatory record has been returned many times over.  If you are in a situation where you've been unfairly accused, don't hesitate to talk with Eccleston Law. They are the best.

Thomas C.

LATEST NEWS AND ARTICLES

August 15, 2022
FINRA Proposal Would Permit Private Homes to Serve as Non-Branch Offices

The Financial Industry Regulatory Authority (FINRA) has filed proposed changes to FINRA Rule 3110 with the Securities and Exchange Commission (SEC).

August 12, 2022
SEC Charges J.P. Morgan, UBS, and TradeStation for Deficiencies Pertaining to the Prevention of Customer Identify Theft

The Securities and Exchange Commission (SEC) has charged J.P. Morgan Securities, UBS Financial Services, and TradeStation Securities over deficiencies in their programs designed to prevent client identify theft, which violates the SEC’s Identity Theft Red Flags Rule, or Regulation S-ID.

August 11, 2022
FINRA Suspends Former Schwab Advisor for Failing to Disclose Felony Charges

The Financial Industry Regulatory Authority (FINRA) has suspended a former Charles Schwab advisor who allegedly failed to disclose multiple felony charges.