Is anyone really surprised by this sort of thing anymore?

Retroactive exemption? Investment property treated as 2nd home on the loan?

Par for the course. Hope & Change.

Gen...Pin something up here on this speech and on calling our reps. We can comment as we get through in each of our states. Something that's a real time log. That way if Obama/Congress is just ignoring the voice of the people we have numbers to prove this...we actually have our voices published. We each need to list our state and the rep and what the voice was about.

Couldn't have come out at a worse time for Bair. The mood to throw folks out on their ear, whether by politicians or voters, hasn't been this high for a long time. See ya, Shelia.

I'm still reeling that the Treasury Secretary didn't pay his taxes. Now this?

THROW THEM ALL OUT NOW!!!

Jeezzzz, he paid them, RETROACTIVELY...


PAID IN FULL....


When it became known..

She is a Bush appointee, why is she still there? Must have the goods on someone.

Words can no longer describe how ****ed and disgusted I am with all of it.

Time for a C-Bomb

Lying on loan apps about rental property happens all the time. rentals are by definition higher risk and should be treated as such.

They think they can do anything they want and ethics don't apply to them.

People were indifferent when the tax cheater Timmy was appointed.

Lying on loan apps by the woman running the FDIC!!!!! Ridiculous

Quote:

Lying on loan apps by the woman running the FDIC!!!!! Ridiculous

Getting any kind of loan from an institution she is responsible for regulating!!! Even more ridiculous!

Compared to the other corruption that we know is out there, this is nothing. Sometimes I wonder if the media hypes these minor breaches to create the appearance that ethics are being policed when we all know better.

Quote:

Asked about the second-home rider, Andrew Gray, Bair’s spokesman, said that the fact that Bair had renters at her Massachusetts home was “generally known” and that the couple had disclosed it to Bank of America.

So with the help of their loan officer and most likely the knowledge of supervisors at Bank of America the head of the FDIC committed loan fraud.

Quote:

In its official guide for lenders, Fannie Mae, the government-owned corporation that buys mortgages and establishes underwriting standards, states that second-home mortgages must be restricted to “one-unit dwellings” and “must not be rental property.” Bair’s home is listed by the Amherst town assessor as a duplex and is zoned as a two-family unit.

“It should have been refinanced as an investment property, not as a second home, unless somebody really screwed up from an underwriter standpoint,” said Bonnie Hild, an underwriter who was given details of the loan. Hild trains other underwriters and is a member of the advisory board of the National Association of Mortgage Processors.

Exactly. Two things should happen here. She should reimburse Fannie or Freddie - whoever owns her loan- the 1.5 points or approximately $3,000 and she should resign immediately.

She had to sign the final application at closing, stating that the representations on the application are correct. The property type would have to be listed as 2nd home. In addition to that, the rider she signed states explicitly "no rental income". Complete fraud. Bookem Dano

I don't see this as rising to 'resignation' level particularly compared to the well known sleazy loan Obama himself procured for his personal residence.

This is an old problem confronting those who take high level Washington jobs. What to do with the old house which you may not want to sell for a variety of reasons while you work in DC. This doesn't look like a big controversy to me given that the TBTF banks provide the bulk of all mortgages in this country and the terms to not appear to be concessionary.

rtfg

I've been in the business long enough to let you know that this may not be a complete fraud. She may very well have disclosed to her loan officer that she intended to rent the property out and also live in it part time. The fact that it states in the article that this home was zoned as a duplex makes this understandable. For that reason I don't advocate her prosecution. I do however advocate restitution and the immediate resignation from her position.

But maybe I'm just a little naive too.

At least on the correspondent side BOA was not making loans of that size last year in the residential real estate market....hmmm.

I forgot. Laws and regulations are only for little people. Carry on Shelia.

Fugitive - they probably were not making loans of that size in your market - but DC is different. Freddie has some exemptions. I can't remember how high they go.

All I can do is shake my head. This is getting beyond ridiculous. D.C. is so full of corruption. I think they are so used to this that it has become the norm. They don't see anything wrong here.

Clearly Bair has to go.

I wonder how this creeped out now though. Who knows what battles are being fought between the big players in Washington.

TMD,

The mortgage limit in Boston where I live (not exactly a cheap place) with Fannie and Freddie is $523,750. Even in high cost areas in the lower 48 the limit is $729,750. Her loan was over $800,000! On the correspondent side with the large banks the only lender we work with that has non-conforming loans is Chase and they introduced them this fall if memory serves me correct. Chevy Chase, MD is very similar in cost to Boston. I would bet the jumbo conforming limit is $523,750 for a single family home. I am positive it is not $800,000. This type of loan with BOA I would bet was not offered to the general public. I have a brother-in-law who works as a CFO and could qualify for a mortgage of over $2 million with ease. He approached Wells and Citi (I could only get him an ARM) about refinancing a $750k loan. He has substantial assets at those two institutions. Both of them said they couldn't porfolio any loans.

This is pretty routine 'gotcha' journalism. I recall Dick Gephardt during his run for the presidency some years ago was revealed to be renting his 'personal
residence' on the Outer Banks of North Carolina when the loan listed it as his personal residence. Give that the Outer Banks are primarily a vacation site and that Gephardt hailed from Missouri the notion that his beachfront property was his primary residence was ridiculous to begin with but a percent or two on a mortgage is picayune stuff in the scheme of things. No one believed Gephardt was being bribed by his lender with a concessionary loan.

The real corruption is with spouses and relatives hired by companies or lobbyists with business before the government or job offers made after a public
official leaves office. Does anyone seriously believe Bill Clinton's,e.g. $15 million annual income from speaking fees made after he left office was because
of the wit and wisdom he had to offer?