The big, bad sheriff of lending, The Consumer Protection Financial Bureau (CPFB) thought it built a tamper proof fence corralling “bad” loans by holding the lending industry hostage and implementing tough approval guidelines. The old saying if you build a tall fence, someone will build a taller ladder, has proven true.
Bank of America is singing the mortgage blues after being handed a fraud verdict for Countrywide loans. This case, which proved Countrywide hustled loans, or as it was called the High Speed Swim Lane, taking quantity of loans over quality, may cost Bank of America at least another billion dollars. From 2003 to 2008, Countrywide’s guidelines were used for many correspondent lenders as well, such as Freedom Mortgage out of New Jersey.
The U.S. is following the great wizard, Uncle Sam down the yellow brick road to economic prosperity. We weathered the tornado of almost financial destruction in 2008. Now before us are rainbows and sunny skies.
In fact, the future is so bright we may need to wear shades. The housing market is skipping merrily along.