| Chase mortgage memo pushes 'Cheats & Tricks'
A newly surfaced memo from banking giant JPMorgan Chase provides a rare glimpse into the mentality that fueled the mortgage crisis. The memo's title says it all: "Zippy Cheats & Tricks." It is a primer on how to get risky mortgage loans approved by Zippy, Chase's in-house automated loan underwriting system. The secret to approval? Inflate the borrowers' income or otherwise falsify their loan application. The document, a copy of which was obtained by The Oregonian, bears a Chase corporate logo. But it's unclear how widely it was circulated or used within Chase. Bank spokesman Tom Kelly confirmed that the "Cheats & Tricks" memo was e-mailed from Chase but added that it does not reflect Chase corporate policy. "This is not how we do things," he said.
Bill to check mortgage fraud requires reassessments
Property appraisers would have to reassess home values in neighborhoods beset with mortgage fraud under a proposal Florida House lawmakers approved Tuesday. The bill, which now proceeds to the Senate, also stiffens criminal penalties for perpetrators of mortgage fraud, providing up to 15 years in prison for some violations. Florida ranked first in the nation for the rate of home loans containing fraud in 2007, its second year topping the list, according to an annual industry report. .
Nelson hits out at 'insensitive' RBA
OPPOSITION Leader Brendan Nelson says comments made by Reserve Bank of Australia (RBA) boss Glenn Stevens, defending major banks lifting home loan interest rates above the official cash rate, are borderline "insensitive". The RBA governor has said it was unrealistic to expect banks to move their lending rates in line with the official cash rate given "the recent environment". "Some of those remarks ... are bordering on insensitive," Dr Nelson told the Nine Network today. "Anyone who would say that has never been in a home where a family has been told that the bank is going to take their home away from them. "Anybody in Australia who wants to trivialise the pressure of interest rates on Australian families, needs a reality check." Dr Nelson said the Reserve Bank and the Rudd Government should be putting maximum pressure on the banks to minimise rate rises above the official cash rate.
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