3 ms·

Aren't they being accused of misrepresenting over $20 million worth of loans to institutional investors? It sounds like they are dealing with some serious fraud

• retbull 10y ago
  They control 5 billion. So 20 million is a lot but in those terms, a small misstep.
• rcarrigan87 10y ago
  As with anything financial, there's always a lot of grey. Litigation will get drug out, a fine will be levied, business will resume. DOJ probe is a CYA move by the feds.
• pmorici 10y ago
  No, it was 3 million. They originate over $100 million per month in loans so it was a very small amount and the data they fudged was not related to the credit quality. The only reason to be concerned is if you believe this is only the tip of the iceberg. Those fears were put to rest yesterday though when the new CEO released a letter stating that they engaged an accounting firm to audit their entire portfolio and found no additional discrepancies.
  • chris11 10y ago
    Ah, some papers are reporting that New York is interested in $22 million in loans to one specific client. 3 million sounds a lot less troublesome.
    • pmorici 10y ago
      The total amount of loans sold to the client was $22 million but only $3 million of those didn't conform. The issue at the heart of this is the legal language in the agreement that was shown to the loan applicant when they applied for the loan. It was really a stupid thing for them to fudge and the returned loans have already been snapped up by other clients.