The wayward behavior didn’t stop with drugs. Glover learned that his colleague’s art work wasn’t a matter of saving a borrower the hassle of coming in to supply a missed signature. The guy was forging borrowers’ signatures on government-required disclosure forms, the ones that were supposed to help consumers understand how much cash they’d be getting out of the loan and how much they’d be paying in interest and fees.
What if a customer insisted he wanted a fixed-rate loan, but you could make more money by selling him an adjustable-rate one? No problem. Many Ameriquest salespeople learned to position a few fixed-rate loan documents at the top of the stack of paperwork to be signed by the borrower. They buried the real documents—the ones indicating the loan had an adjustable rate that would rocket upward in two or three years—near the bottom of the pile. Then, after the borrower had flipped from signature line to signature line, scribbling his consent across the entire stack, and gone home, it was easy enough to peel the fixed-rate documents off the top and throw them in the trash.
People wonder why we can’t find an original note, complete with the documentation? Why the original loan files “disappeared” – this, in a business, that historically has all been about paper, and which has studiously kept it around?
After all, you can walk into any office supply store in America and down one of the aisles you will find a product called BANKER’S BOXES. With good reason.
This is the part of the lending story that nobody wants to talk about. Wall Street securitized this paper, even though they knew they were securitizing trash. The original documents would prove the frauds – if they were ever produced in court.
So the key is to, of course, never produce original documents – that way they can’t be challenged, there is no evidence, and the only focus we have is on the borrower, who of course isn’t paying and thus we have an excuse to railroad him or her.
Never do we look into what he signed (or didn’t), what was forged, what was gamed.
The W2 that isn’t really his – oh, he submitted one, but the loan broker used a scanner and Photoshop, and the one in the file isn’t the one that the customer submitted. The borrower has a fixed-rate disclosure document, but in the file is an adjustable-rate one that was at the bottom of the 3″ stack of paper; the customer unwittingly signed that, and the fixed-rate one on the top was destroyed. The “GFE” – Good-Faith Estimate – that the customer has in his folder doesn’t match the one in the file either, because that too was doctored – and we know for a fact the customer didn’t change that piece of paper.
Why aren’t we using the words “fraud”, “felony”, “prosecution”, or “criminal”?
Because if we do, then we have to dig into how loans like this got made. How many of them got made.
And how many of the so-called “deadbeats” are really beaten dead – by a financial system that rooked them and now has committed hundreds of thousands of felony counts of perjury to cover it up.